Teal Co. uses the gross method to record sales made on credit. On June 1, 2017,

Question

Teal Co. uses the gross method to record sales made on credit. On June 1, 2017, it made sales of $50,400 with terms 3/15, n/45. On June 12, 2017, Teal received full payment for the June 1 sale.

Prepare the required journal entries for Teal Co. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

June 1

June 12

Date

Account Titles and Explanation

Debit

Credit

June 1

June 12

Explanation / Answer

Date Account Titles and Explanation Debit Credit June 1 Accounts Receivable $50,400   Sales Revenue $50,400 June 12 Cash $48,888 Sales Discounts ($50,400 x 3%) $1,512   Accounts Receivable $50,400

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