Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

18-4 Sheridan Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2017. The goods have a sales price of $590,100

18-4
image text in transcribed
image text in transcribed
Sheridan Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2017. The goods have a sales price of $590,100 (cost of $460,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $10,100. Past history indicates that the cash discount will be taken. On January 2B, 2017, Danone makes payment to Sheridan for the full sales price. Prepare the journal entry(ies) to record the sale and related cost of goods sold for Sheridan Company on January 2 2017, and the payment on January 28, 2017. Assume that Sheridan Company records the using the net method. (Credit account titles are automatically indented when the amount is e indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Date (To record sales) (To record cost of goods sold)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Insiders Guide To Dol Plan Audits How To Survive An Employee Benefit Plan Audit

Authors: Frank J. Bitzer, Jr. Ferrigno, Nicholas W.

1st Edition

0872182711, 978-0872182714

More Books

Students also viewed these Accounting questions

Question

What would you do if you were Scott Patterson?

Answered: 1 week ago