Question

AG Inc. made a $15,000 sale on account with the following terms: 1/15, n/30. If the

company uses the gross method to record sales made on credit, what is/are the
debit(s) in the journal entry to record the sale?

Answer 1

The Answer is

14,850

Answer 2

$14,850

Net Method - report at net; as if taking discount 1% discount. [15000 - (15000*.010]

Inventory/Purchases 14,850

Accounts Payable 14,850