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Brief Exercise 5-58 Sales Discounts (Appendix 5A) Harry Gardner provides tax services for small businesses. This year's tax season has proved especially lucrative for Harry;
Brief Exercise 5-58 Sales Discounts (Appendix 5A) Harry Gardner provides tax services for small businesses. This year's tax season has proved especially lucrative for Harry; he earned $45,000 for providing his services. Harry uses terms of 1/10, n/30 in billing his customers. Required: 1. Prepare the necessary journal entry to record the sale, assuming Harry does not expect his customers to pay within the discount period. Accounts Receivable 45,000 Sales Revenue 45,000 Record sale Feedback 2. Prepare the necessary journal entry to record collection of the receivable assuming the customer pays within 10 days. If an amount box does not require an entry, leave it blank. Cash 45,000 x Sales Revenue Accounts Receivable Record sale within discount period 45,000 Feedback 3. Prepare the necessary journal entry to record collection of the receivable assuming the customer pays after 10 days. 45,000 Cash Accounts Receivable Record sale after discount period 45,000
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