Case1

1)Express design Ltd provide $5000 of graphic design service to one of its clents with credit terms of net 30 days on 3 June 2018. Revenue are considered earned when the service are provided. This mean that on June 3 express design will recognize the revenues even if it will not receive money until 3^rd of the july

Required

identify which account are affected and explain how they are affected

Prepare journal entry for the transaction on 3 June 2018

2) Express Design also sells design product. It has just sold and shipped $11000 worth of design product using the terms FOB., shipping point on 10 June 2018. The cost of good sold for this sale is 80% of the sales amount

Required

calculate the cost of good sold

Prepare journal entry for the transaction on 10 June 2018

3 Express Design also sells design product. It has just sold and shipped $11000 worth of design product using the terms FOB., shipping point on 10 June 2018. The cost of good sold for this sale is 80% of the sales amount. The term of the sale is 2/10 net 30

Required

explain the credit terms 2/10, net 30

what is net amount due on 15 June 2018

what the net amount due on 15 July 2018