Question 1 and General Journal Entries

Effects of Sales Discounts Instructions Chart of Accounts First Questions General Journal Instructions X First Questions Shaded cells have feedback. 1. Compute the amount of sales that Citron recorded for the year. $694,000 X Citron Mechanical Systems makes all sales on credit, with terms 1/15, n/30. During the year, the list price (prediscount) of services provided was $694,000. Customers paid $498,000 (list price) of these sales within the discount period and the remaining $196,000 (list price) after the discount period. Citron uses the net method of recording sales. Points: 0/1 General Journal Shaded cells have feedback. How does grading work? Required: 1. Compute the amount of sales that Citron recorded for the year. 2. Compute the amount of cash that Citron collected from these sales. 3. Assuming the net method was used for all sales, prepare a summary journal entry to record these sales and a second summary entry to record the cash collected. GENERAL JOURNAL Score: 40/63 DATE ACCOUNT POST. REF DEBIT CREDIT Dec. 31 Accounts Receivable 689,020.00 Service Revenue 689,020.00 Dec. 31 Cash 493,020.00 Sales discount 4,980,00 Accounts Receivable 498,000.00