The following transactions are for ACo. Prepare the journal entries for ACo, a seller.

a. Dec 03, ACo sold $500,000 of mdse to a customer, on account, terms 1/10, n/30.

The cost of mdse sold was $330,000. (2 entries reqd, one for 500k the other for 330k)

(Ive done one of the entries for you do the other reqd entry for the 330k)

b. Dec 08, ACo gave the customer a Sales Allowance of $25,000 for mdse bought Dec 03.

(FYI: no cash is exchanged when giving an allowance it reduces the amt to be collected).

c. Dec 13, ACo received, from the customer, the amount owed.

(Does this include a sales discount or a reduction to Inventory? You the buyer or seller?)

Dec 03	ACCOUNTS RECEIVABLE	500,000
(a)	SALES		500,000
Dec 08
(b)
Dec 13
(c)