(To record cost of goods sold) Oct. 15, 2017 Cash Accounts Receivable Sales Disc

Question

(To record cost of goods sold) Oct. 15, 2017 Cash Accounts Receivable Sales Discounts Forfeited SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. On October 1, 2017, Carla sold one of its super deluxe combination gas/charcoal grills to a local builder. The builder plans to install it in one of its "Parade of Homes" houses. Carla accepted a 3-year, zero-interest-bearing note with face amount of $5,697. The grill has an inventory cost of $2,539. An interest rate of 10% is an appropriate market rate of interest for this customer. Prepare the journal entries on October 1, 2017, and December 31, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to decimal places e.g. 58,971.) Date Account Titles and Explanation Debit Credit Oct. 1, 2017 Accounts Receivable Sales Revenue

Explanation / Answer

01-Sep-17 Accounts receivable 892 (920*97%)               Sales revenue 892 Cost of goods sold 535              Inventory 535 25-Sep-17 Cash 892          Accounts receivable 892 01-Sep-17 Accounts receivable 892 (920*97%)               Sales revenue 892 Cost of goods sold 535              Inventory 535 15-Oct-17 Cash 920           Accounts receivable 892            Discount forfieted 28

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