Question

Company A shipped to the buyer 15 units of goods at a price of $20,000 per unit on terms of trade credit. The cost of sales goods - $16,000 per unit. 16.08 the buyer repaid the receivables (paid by cash) in amount of 80%. 30.08 The last 20% of trade credit was paid. Write down journal entries date account Journal Debit Credit

          Company A shipped to the buyer 15 units of goods at a price of $20,000 per unit on terms of trade credit. The cost of sales goods - $16,000 per unit. 16.08 the buyer repaid the receivables (paid by cash) in amount of 80%. 30.08 The last 20% of trade credit was paid. Write down journal entries date account Journal Debit Credit

Company A shipped to the buyer 15 units of goods at a price of 20,000 per unit on terms of trade credit. The cost of sales goods -16,000 per unit. 16.08 the buyer repaid the receivables (paid by cash) in amount of 80%. 30.08 The last 20% of trade credit was paid. Write down journal entries date account Journal Debit Credit

Added by Phillip H.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Vysakh M

Step 1

On the date of the sale (assuming it is the same as the shipment date), we need to record the revenue and the cost of goods sold. The revenue is calculated by multiplying the number of units sold (15) by the price per unit ($20,000). The cost of goods sold is Show more…

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Company A shipped to the buyer 15 units of goods at a price of $20,000 per unit on terms of trade credit. The cost of sales goods is $16,000 per unit. On August 16th, the buyer repaid the receivables (paid by cash) in the amount of 80%. On August 30th, the remaining 20% of the trade credit was paid. Journal Entries: Date Account Debit Credit --------------------------------------- Aug 16 Receivables $240,000 Cash $192,000 Sales Revenue $240,000 Cost of Goods Sold $240,000 Aug 30 Receivables $48,000 Cash $48,000