Question
The following information pertains to Windsor Solar Panels, Inc. July 1: Sold $132,000 of solar panels to Wildhorse Company with terms 2/15, n/30. Windsor uses
The following information pertains to Windsor Solar Panels, Inc.
July 1: Sold $132,000 of solar panels to Wildhorse Company with terms 2/15, n/30. Windsor uses the gross method to record cash discounts. Windsor estimates allowances of $1,500 will be honored on this sale.
July 12: Sold $93,000 of solar panels to Swifty Corp. with terms of 3/10, n/60.Windsor expects no allowances related to this sale.
July 18: Swifty Corp. paid Windsor for its July 12 purchase.
July 20: Wildhorse calls to indicate that the panels purchased on July 1 work well, but the color is not quite right. Windsor grants a credit of $2,300 as compensation.
July 29: Wildhorse Company paid Windsor for its July 1 purchase.
July 31: Windsor expects allowances of $4,140 to be grated in the future related to solar panel sales in July.
Prepare the necessary journal entries for Windsor.(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.)
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