Question
(a) A company makes a $25,000 sale on account. The company expects that $10,000 will be collected within a week and the balance within a
(a) A company makes a $25,000 sale on account. The company expects that $10,000 will be collected within a week and the balance within a month. What is the proper entry to record the transaction at the time of sale?
(b) A company makes a $30,000 sale on account but with a 10% cash down payment. What is the proper entry to record this transaction? You are required to give your answer with proper explanation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
a To record the 25000 sale on account you would use the following journal entry Debit Accounts Recei...
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Step: 2
Step: 3
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
78025915, 978-1259115400, 1259115402, 978-0078025914
