Brief Exercise 5-59
Sales Discounts (Appendix 5A)
Ramsden Inc. provided consulting services with a gross price of $25,000 and terms of 2/10, n/30.
Required:
1. Prepare the necessary journal entry to record the sale under the gross method.
Accounts Receivable
Sales Revenue
Record sale
25,000?
25,000
Feedback
Check My Work
2. Prepare the necessary journal entry to record collection of the receivable, assuming the customer pays within 10 days. If an amount box does not require an entry, leave it blank.
Cash
Sales Discounts
24,000 X
X
500
Accounts Receivable
?
25,000
Record collection within discount period