SALES DISCOUNTS Spartan, Inc., regularly sells chemicals to Grieder Supply on terms 4/10, n/30 and records sales
Question:
SALES DISCOUNTS Spartan, Inc., regularly sells chemicals to Grieder Supply on terms 4/10, n/30 and records sales at gross. During a recent month, the two firms engaged in the following transactions:
a. Spartan sold merchandise with a list price of $37,000.
b. Spartan sold merchandise with a list price of $52,000.
c. Grieder paid for the purchase in transaction a within the discount period.
d. Grieder paid for the purchase in transaction b after the discount period.
Required:
. Provide the journal entries for Spartan to record the sales in a and b.
. Provide the journal entry to record Grieder’s payment in c.
. Provide the journal entry to record Grieder’s payment in d.
Step by Step Answer:
Cornerstones Of Financial Accounting Current Trends Update
ISBN: 9781111527952
1st Edition
Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen