On January 11, 2019, Glassiere Co. sold a Model 3146 home theatre equipment cabinet to the HLJ

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On January 11, 2019, Glassiere Co. sold a Model 3146 home theatre equipment cabinet to the HLJ Company on invoice No. 3275. The unit has a list price of $3,800, and this customer receives a trade discount of 40%. All sales invoices are sold on terms of 2/10, n/30. Due to a manufacturing defect, the colour of the stain used on this unit was slightly different from normal, and KLJ asked for and received a credit memorandum (No. 202) in the amount of $200 net, dated January 14 (which means this is deducted from the actual total of this invoice, not the list price). The cost of the inventory was $150. HLJ Company paid the invoice less the trade discount and credit memorandum on January 20. Record the sale, the credit memorandum, and the cash receipt in appropriate journals, and record to the customer’s account as necessary. Because the sales and cash receipts journals are only posted at month end, you may skip the general ledger postings for these two journals.

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College Accounting A Practical Approach

ISBN: 978-0134166698

13th Canadian edition

Authors: Jeffrey Slater, Debra Good

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