Record the following transactions for Turnbull Company. 1.On August 4, Turnbull

Question

Record the following transactions for Turnbull Company. 1.On August 4, Turnbull sold merchandise on account to Tabor Company for $450, terms 2/10, n/30. 2.On August 7, Turnbull granted Tabor a sales allowance and reduced the cost of the merchandise by $50 because some of the goods were slightly damaged. 3.On August 12, Tabor paid the account in full. Record the following transactions for Turnbull Company. 1.On August 4, Turnbull sold merchandise on account to Tabor Company for $450, terms 2/10, n/30. 2.On August 7, Turnbull granted Tabor a sales allowance and reduced the cost of the merchandise by $50 because some of the goods were slightly damaged. 3.On August 12, Tabor paid the account in full. Record the following transactions for Turnbull Company. 1.On August 4, Turnbull sold merchandise on account to Tabor Company for $450, terms 2/10, n/30. 2.On August 7, Turnbull granted Tabor a sales allowance and reduced the cost of the merchandise by $50 because some of the goods were slightly damaged. 3.On August 12, Tabor paid the account in full. Record the following transactions for Turnbull Company. 1.On August 4, Turnbull sold merchandise on account to Tabor Company for $450, terms 2/10, n/30. 2.On August 7, Turnbull granted Tabor a sales allowance and reduced the cost of the merchandise by $50 because some of the goods were slightly damaged. 3.On August 12, Tabor paid the account in full.

Explanation / Answer

Answer:

Transaction in the books of Turnbull Company

August 4-                   Account Receivable                                     $ 450

Sales Revenue                                             $450

                                    (Being Turnbull sold merchandise to Tabor Company)

August 7-                   Sales Return and Allowances                     $50

Accounts Receivable                                   $50

                        (Being Turnbull granted Tabor a sales allowances of $50 on account of damage goods)

August 12-                 Sales Discount                                              $8

Cash $392

                                                Accounts Receivable                                   $400

                        (Being Tabor paid amount in full within 30 days after reducing 2% discount)

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