Question
Recording Cash Discount EntriesNet Method Lynx Inc. sells apparel merchandise to Dyson Inc. at a gross sales price of $630, credit terms 2/10, n/30 on
Recording Cash Discount EntriesNet Method
Lynx Inc. sells apparel merchandise to Dyson Inc. at a gross sales price of $630, credit terms 2/10, n/30 on July 10, 2020. Dyson pays for the merchandise in full on July 19, 2020. Record the entries required on July 10, 2020, and July 19, 2020, for Lynx Inc. assuming use of the net method in accounting for credit sales. Omit the cost of goods sold entry.
Note: Round your answers to the nearest whole number.
| Date | Account Name | Dr. | Cr. |
|---|---|---|---|
| July 10 | CashAccounts ReceivableAllowance for Doubtful AccountsInterest ReceivableInventoryInventoryEstimated ReturnsRefund LiabilitySales RevenueSales ReturnsSales DiscountSales Discount ForfeitedCost of Goods SoldBad Debt ExpenseN/A | ||
| CashAccounts ReceivableAllowance for Doubtful AccountsInterest ReceivableInventoryInventoryEstimated ReturnsRefund LiabilitySales RevenueSales ReturnsSales DiscountSales Discount ForfeitedCost of Goods SoldBad Debt ExpenseN/A | |||
| July 19 | CashAccounts ReceivableAllowance for Doubtful AccountsInterest ReceivableInventoryInventoryEstimated ReturnsRefund LiabilitySales RevenueSales ReturnsSales DiscountSales Discount ForfeitedCost of Goods SoldBad Debt ExpenseN/A | ||
| CashAccounts ReceivableAllowance for Doubtful AccountsInterest ReceivableInventoryInventoryEstimated ReturnsRefund LiabilitySales RevenueSales ReturnsSales DiscountSales Discount ForfeitedCost of Goods SoldBad Debt ExpenseN/A |
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Financial Accounting
Authors: Michael J. Jones
2nd Edition
1119977150, 978-1119977155
