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The following information pertains to Kingbird Solar Panels, Inc. July 1 Sold $136,000 of solar panels to Blossom Company with terms 3/15, n/30. Kingbird uses
The following information pertains to Kingbird Solar Panels, Inc.
July | 1 | Sold $136,000 of solar panels to Blossom Company with terms 3/15, n/30. Kingbird uses the gross method to record cash discounts. Kingbird estimates allowances of $1,500 will be honored on this sale. | ||
12 | Sold $94,000 of solar panels to Ayayai Corp. with terms of 4/10, n/60. Kingbird expects no allowances related to this sale. | |||
18 | Ayayai Corp. paid Kingbird for its July 12 purchase. | |||
20 | Blossom calls to indicate that the panels purchased on July 1 work well, but the color is not quite right. Kingbird grants a credit of $2,500 as compensation. | |||
29 | Blossom Company paid Kingbird for its July 1 purchase. | |||
31 | Kingbird expects allowances of $5,580 to be grated in the future related to solar panel sales in July. |
Prepare the necessary journal entries for Kingbird. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date Account Titles and Explanation Debit Credit July 1 Accounts Receivable 136,000 Sales Revenue 136,000 July 12 TAccounts Receivable 94,000 Sales Revenue 94,000 X July 18 + Cash 66800 X Sales Discounts 27,200 Accounts Receivable 94,000 July 20 T Notes Payable 2,500 Accounts Receivable 2,500 July 29 # Cash 133,500 Accounts Receivable 133,500 X July 31 Sales Discounts 5,580 Allowance for Doubtful 5,580 Sales Revenue 94,000 July 18 Cash 66800 Sales Discounts 27,200 Accounts Receivable 94,000 July 204 [Notes Payable 2,500 3 Accounts Receivable 2,500 July 29 Cash 133,500 Accounts Receivable 133,500 > July 31 Sales Discounts 5,580 Allowance for Doubtful 5,580 Click if you would like to Show Work for this question: Open Show Work
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