Presented below is information from Waterway Computers Incorporated. Sold $26,20

Question

Presented below is information from Waterway Computers Incorporated. Sold $26,200 of computers to Robertson Company with terms 3/15, n/60. Waterway uses the gross method to record cash discounts. Waterway estimates allowances of $1,225 will be honored on these sales. Waterway received payment from Robertson for the full amount owed from the July transactions. Sold $274,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. The Clark Store paid Waterway for its purchase of July 17. July 1 10 17 30 Prepare the necessary journal entries for Waterway Computers. (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.)

Explanation / Answer

Solution :- Journal entries

Robertson company (Accounts receivable) A/c Dr.

To Sales revenue A/c

26200

26200

Cash A/c Dr. (26200 - 26200 * 3 %)

Discount allowed A/c Dr. (26200 * 3 %)

To Robertson company (Account receivable) A/c

25414

786

26200

Clark Store (Accounts receivable) A/c Dr.

To Sales revenue A/c

274000

274000

Cash A/c Dr.

To Clark Store (Accounts receivable) A/c

274000

274000

Date Particulars Debit ($) Credit ($) July 1

Robertson company (Accounts receivable) A/c Dr.

To Sales revenue A/c

26200

26200

July 10

Cash A/c Dr. (26200 - 26200 * 3 %)

Discount allowed A/c Dr. (26200 * 3 %)

To Robertson company (Account receivable) A/c

25414

786

26200

July 17

Clark Store (Accounts receivable) A/c Dr.

To Sales revenue A/c

274000

274000

July 30

Cash A/c Dr.

To Clark Store (Accounts receivable) A/c

274000

274000

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