Answer :
Answer:
the amount of cash that should be received by the seller is $9,603
Explanation:
Transaction to be recorded on date of Sale
Trade Receivable $12,100 (debit)
Revenue $12,100 (credit)
Being Recognition of Revenue
Delivery Cost $341 (debit)
Bank $341 (credit)
Being Recognition of Delivery Costs
Credit for Merchandise Returned
Revenue $2,400 (debit)
Trade Receivable $2,400 (credit)
Payment made within the discount period
Discount Allowed $97 (debit)
Trade Receivable $97(credit)
Discount = ($12,100-$2,400)×1%=$97
Cash $9,603 (debit)
Trade Receivable $9,603 (credit)
Answer:
$10,041
Explanation:
The journal entries should be:
merchandise sold on account, terms 1/10, n/eom
Dr Accounts receivable 12,100
Cr Sales revenue 12,100
prepaid freight charges $341, FOB shipping (when using FOB shipping point, the buyer pays the freight costs, when using FOB destination, the seller pays freight costs)
Dr Accounts receivable $341
Cr Cash 341
some merchandise was returned
Dr Sales returns and allowances 2,400
Cr Accounts receivable 2,400
invoice is paid within discount term
Dr Cash 9,944
Dr Sales discounts 97 (applies only to merchandise not freight)
Cr Accounts receivable 10,041 (includes accounts receivables for merchandise sold and freight charges)