Exercise 7-5 (Part Level Submission) (a) Date Account Titles and Explanation Deb

Question

Exercise 7-5 (Part Level Submission)

(a)

Date

Account Titles and Explanation

Debit

Credit

July 10

July 26

Exercise 7-5 (Part Level Submission)

Information from Crane Company follows:
July 1 Sold $83,800 of computers to Blue Spruce Corp., terms 2/15, n/30. 5 Blue Spruce Corp. returned for full credit one computer with an invoice price of $6,300. 10 Crane received payment from Blue for the full amount owed from the July transactions. 17 Sold $154,400 in computers and peripherals to Nawaz Store, terms 2/10, n/30. 26 Nawaz Store paid Crane for half of its July purchases. Aug. 30 Nawaz Store paid Crane for the remaining half of its July purchases.

Explanation / Answer

Journal entries : Gross method :

date accounts & explanation debit credit July 1 Account receivable a/c 83800      Sales revenue a/c 83800 (To record sales on account) July 5 Sales return a/c 6300      Account receivable a/c 6300 (To record sales return) July 10 Cash a/c 75950 Sales discount a/c 1550     Account receivable a/c 77500 (To record payment received) July 17 Account receivable a/c 154400      Sales revenue a/c 154400 (To record sales revenue) July 26 Cash a/c (77200*98%) 75656 Sales discount a/c (77200*2%) 1544      Account receivable a/c (154400/2) 77200 (To record payment received) Aug 30 Cash a/c 77200      Account receivable a/c 77200 (To record payment received)

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