Question
Question 5 Soda Ltd sells plastic bottles. Wholesale customers that purchase more than 9,800 bottles per month are entitled to a discount of 6% on
Question 5
Soda Ltd sells plastic bottles. Wholesale customers that purchase more than 9,800 bottles per month are entitled to a discount of 6% on their purchases. On 1 March 2019, Customer P ordered 12 crates of bottles from Soda Ltd. Each crate contains 2,000 bottles. The normal selling price per crate is $400. Soda Ltd delivered the 12 crates on 15 March 2019. Customer P paid for the goods on 15 April 2019. The end of Soda Ltd's reporting period is 30 June. Prepare the journal entries to record this transaction by Soda Ltd for the year ended 30 June 2019. (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select 'No entry' for the account titles and enter 0 for the amounts.)
Date | Account and explanation | Debit | Credit |
01/03/19 | Revenue No entry Income tax expense Receivable Cash | ||
Receivable Income tax expense Cash No entry Revenue | |||
15/03/19 | Income tax expense Revenue No entry Receivable Cash | ||
No entry Receivable Revenue Income tax expense Cash | |||
15/04/19 | Income tax expense No entry Revenue Cash Receivable | ||
Revenue Cash Income tax expense No entry Receivable | |||
(To record the cash received and recovery of the receivable) |
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