ACCT 2401 Chapter 5, Homework
2
c. On 9/12 Year 7 $2,000 of ACCOUNTS RECEIVABLE is collected in CASH, after the
discount period.
Phrase
Account
Category
Affect
Dr. or Cr.
1st:
A L S E R E contra
+
Dr Cr
2nd:
A L S E R E contra
+
Dr Cr
Accounts
Debit
Credit
d. On 9/28 Year 7 merchandise originally sold for $4,000 on 9/1 Year 7 and collected on 9/10
Year 7 is received back from the customer (SALES R&A) and a credit memo (a credit to A/R) is
issued by the seller. $2,400 of merchandise is returned to INVENTORY and the COST OF
GOODS SOLD is reversed. [Hint: the amount of cash involved in this transaction must take the
2% discount into account.]
Phrase
Account
Category
Affect Dr. or Cr.
1st:
SALES R&A
A L S E R E contra
A
DCr
2nd:
A L S E R E contra +
Dr Cr
3rd:
A L S E R E contra
+
Dr Cr
4th:
A L S E R E contra +
Dr Cr
Accounts
Debit
Credit
SALES R&A
A/R
