Question
Presented below are transactions related to Pharoah Company. 1. On December 3, Pharoah Company sold $618,600 of merchandise on account to Wildhorse Co., terms 3/10,
Presented below are transactions related to Pharoah Company.
1. On December 3, Pharoah Company sold $618,600 of merchandise on account to Wildhorse Co., terms 3/10, n/30, FOB shipping point. The cost of the merchandise sold was $396,800. 2. On December 8, Wildhorse Co. was granted an allowance of $22,900 for merchandise purchased on December 3.
3. On December 13, Pharoah Company received the balance due from Wildhorse Co.
Assume that Pharoah Company received the balance due from Wildhorse Co., on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2
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