CascadeCascade

Electronics is a wholesaler that sells on terms of

22/10,

n/30. Suppose it sold video equipment to

Carver IncCarver Inc

for

$ 325 comma 000$325,000

on open account on

AprilApril

10. Payment (net of cash discount) was received on

AprilApril

19.

Requirements

1.	By using the balance sheet equation framework, analyze the two transactions for CascadeCascade Electronics using the gross method for cash discounts.
2.	Prepare the journal entries.

Requirement 1. By using the balance sheet equation framework, analyze the two transactions for

CascadeCascade

Electronics using the gross method for cash discounts. (Use a minus sign or parentheses to show a decrease in the accounting equation component and leave any unused cells blank.) Sold video equipment (on terms of

22/10,

n/30) to

Carver IncCarver Inc

for

$ 325 comma 000$325,000

on open account on

AprilApril

10.

Assets			=	Liabilities	+	Stockholder's Equity
Cash	+	Accounts Receivable	=	Accounts Payable	+	Sales	+	Cash Discounts on Sales
	+		=		+		+

Payment (net of cash discount) was received on

AprilApril

19.

Assets			=	Liabilities	+	Stockholder's Equity
Cash	+	Accounts Receivable	=	Accounts Payable	+	Sales	+	Cash Discounts on Sales
	+		=		+		+

Requirement 2. Prepare the journal entries. (Enter debits first, then credits. Explanations are not required.)

Sold video equipment (on terms of

22/10,

n/30) to

Carver IncCarver Inc

for

$ 325 comma 000$325,000

on open account on

AprilApril

10.

Date		Accounts	Debit	Credit
Apr.	10

Payment (net of cash discount) was received on

AprilApril

19.

Date		Accounts	Debit	Credit
Apr.	19