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Sunland Company sells goods to Splish Brothers Inc. on account on January 1, 2017. The goods have a sales price of $640,000 (cost $500,000). The
Sunland Company sells goods to Splish Brothers Inc. on account on January 1, 2017. The goods have a sales price of $640,000 (cost $500,000). The terms of the sale are net 30. If Splish Brothers pays within five days, it receives a cash discount of $8,000. Past history indicates the cash discount will be taken. Prepare the journal entries for Sunland for January 1, 2017. (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 o for the amounts.) Account Titles and Explanation Debit Credit (To record the sale.) (To record cost of goods sold.) Prepare the journal entry for Sunland for January 31, 2017, assuming Splish Brothers does not make payment until January 31, 2017. (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 o for the amounts.) Account Titles and Explanation Debit Credit
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