Question

Record the following transactions on the books of Cullumber Co. (Omit cost of goods sold entries.) (a) On July 1, Cullumber Co. sold merchandise on account to Stacey Inc. for $20,820, terms 2/10, n/30. (b) On July 8, Stacey Inc. returned merchandise worth $2,520 to Cullumber Co. (c) On July 11, Stacey Inc. paid for the merchandise.

Answer 1

Step-by-step explanation:

Debit Cash $20,188

Debit Sales Discounts $366

Credit Accounts Receivable $18,300

Sales Discounts is calculated by $18,300 x 0.02 = $366

Cash is calculated by ($20,820 - $2,520) * (1.00 - 0.02) = $17,934

Accounts receivable is calculated by $23,000 - $2,400 = $18,300