Appendix 1: Gross method for sales discounts The following were selected from among the transactions completed by Essex Company during March of the current year: Mar. 2. Sold merchandise on account to Parsley Co., $32,000, terms 1/10, n/30. The cost of the merchandise sold was $18,500. 8. Sold merchandise on account to Tabor Co., $24,000, terms 2/10, n/30. The cost of the merchandise sold was $14,400. 11. Received payment on account for the sale of March 2 less the discount. 20. Received payment on account for the sale of March 8. Journalize the March transactions using the gross method of recording sales discounts. If an amount box does not require an entry, leave it blank. Mar. 2 2 8 8 Appendix 1: Gross method for sales discounts The following were selected from among the transactions completed by Essex Company during March of the current year: Mar. 2. Sold merchandise on account to Parsley Co., $32,000, terms 1/10, n/30. The cost of the merchandise sold was $18,500. 8. Sold merchandise on account to Tabor Co., $24,000, terms 2/10, n/30. The cost of the merchandise sold was $14,400. 11. Received payment on account for the sale of March 2 less the discount. 20. Received payment on account for the sale of March 8. Journalize the March transactions using the gross method of recording sales discounts. If an amount box does not require an entry, leave it blank. Mar. 2 Accounts Receivable-Parsley Co. Cash Inventory Sales Sales Discounts Sales Returns and Allowances 8 Appendix 1: Gross method for sales discounts The following were selected from among the transactions completed by Essex Company during March of the current year: Mar. 2. Sold merchandise on account to Parsley Co., $32,000, terms 1/10, n/30. The cost of the merchandise sold was $18,500. 8. Sold merchandise on account to Tabor Co., $24,000, terms 2/10, n/30. The cost of the merchandise sold was $14,400. 1 Received navment on account for the sale of March 2 less the discount. 2 Cash bn account for the sale of March 8. Cost of Goods Sold Journaliz leave it Delivery Expense pns using the gross method of recording sales discounts. If an amount box does not require an entry, Inventory Mar. 2 Sales Sales Discounts 2 8 II II II 8 Appendix 1: Gross method for sales discounts The following were selected from among the transactions completed by Essex Company during March of the current year: Mar. 2. Sold merchandise on account to Parsley Co., $32,000, terms 1/10, n/30. The cost of the merchandise sold was $18,500. 8. Sold merchandise on account to Tabor Co., $24,000, terms 2/10, n/30. The cost of the merchandise sold was $14,400. 11. Received payment on account for the sale of March 2 less the discount. 20. Received payment on account for the sale of March 8. Journalize the March transactions using the gross method of recording sales discounts. If an amount box does not require an entry, lea Accounts Receivable-Tabor Co. M Cash Inventory Sales 2 Sales Discounts Sales Returns and Allowances 00 II II 8 Mar. 2 2. III II II II 8 8 Accounts Receivable-Parsley Co. Cost of Goods Sold Inventory Sales Sales Discounts Sales Returns and Allowances 2 Accounts Receivable-Parsley Co. Cash Inventory Sales Sales Discounts Sales Returns and Allowances II II III II II II 20 Mar. 2 2. 8 II II II II III II Accounts Receivable-Parsley Co. Cash Inventory Sales Sales Discounts Sales Returns and Allowances 20
