Question
Assume the same facts as in Part I (Sarabeth sold goods to Izzy Corp. for $100,000; Sarabeth offers the following terms related to the sale:
Assume the same facts as in Part I (Sarabeth sold goods to Izzy Corp. for $100,000; Sarabeth offers the following terms related to the sale: 5/10, n/60) however now assume Sarabeth uses the net method to account for cash discounts. Please provide the appropriate journal entries Sarabeth will record below assuming the net method is used to record cash discounts. If no entry is required, please write N/A below
**You may round your answers to the nearest dollar!
**Please Show Work**
Journal entry/entries at sale using the NET METHOD:
Journal entry/entries if cash is received after 10 days of the sale using the NET METHOD:
Journal entry/entries if cash is received within 10 days of the sale using the NET METHOD:
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
