Question

Swifty Co. uses the gross method to record sales made on credit. On July 1, 2020, it made sales of 69,000 with terms 2/10 n/30. On July 9, 2020, Swifty received full payment for the July 1 sale. Prepare the required journal entries for Swifty Co.

Answer 1

July 1, 2020

Debit : Accounts Receivable $69,000

Credit : Sales $69,000

July 9, 2020

Debit : Cash $62,100

Debit : Discount allowed $1,380

Credit : Accounts Receivable $69,000

Step-by-step explanation:

Note : Remove the discount from final payment.

The required journal entries for Swifty Co have been prepared above.