Question
I NEED TO SEE CALCULATION/PROCESSES TO UNDERSTAND IT Company A sells goods to Company B on account March 1, 2019. The goods have a sales
I NEED TO SEE CALCULATION/PROCESSES TO UNDERSTAND IT
Company A sells goods to Company B on account March 1, 2019. The goods have a sales price of $300,000 (cost $210,000). If Company B pays within 10 days, it receives a $5,000 cash discount. Past history indicates the cash discount will be taken. Assume the perpetual inventory system and the net method for accounting for the cash discount are used for recording transactions.
Instructions:
- Prepare the journal entries for Company B for March 1, 2019.
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- Prepare the journal entries for Company A for March 31, 2019, assuming Company B does not make the payment until March 31, 2019.
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Social Responsibility Audit A Management Tool For Survival
Authors: John W Humble
1st Edition
0900853522, 978-0900853524
