Question
Stevenson Company manufactures bicycles. On August 15, 2022, the company sold 2,250 bikes to a customer for $500 each. The terms of the sale
Stevenson Company manufactures bicycles. On August 15, 2022, the company sold 2,250 bikes to a customer for $500 each. The terms of the sale were 2/10, n/30. Stevenson uses the gross method of accounting for cash discounts. Bikes sold Selling price per unit Terms 1. Prepare the journal entry to record the sale on August 15 (ignore cost of goods). Date August 15, 2022 General Journal 2,250 $500 2/10, n/30 Debit Credit 2. Assume the customer pays the amount due on August 23, 2022. Prepare the journal entry to record the collection. Date August 23, 2022 General Journal Debit Credit 3. Assume instead the customer does not pay until September 14, 2022. Prepare the journal entry to record the collection. Date September 14, 2022 General Journal Debit Credit 0 0
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