Question
On October 18, 2018, Flying Chicken sold 2,000 pounds of chicken to Healthier Grocery for $3,400, subject to terms 2/10, n/30. Flying Chicken uses the
On October 18, 2018, Flying Chicken sold 2,000 pounds of chicken to Healthier Grocery for $3,400, subject to terms 2/10, n/30. Flying Chicken uses the gross method of accounting for sales discounts.
Required:
A. Prepare the journal entry to record the sale.
B. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on October 26, 2018.
C. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on November 15, 2018.
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Financial Accounting
Authors: David Spiceland, Wayne Thomas, Don Herrmann
4th edition
1259307956, 978-1259307959
