Question
accounting problem pls help?
On December 3, Cisco Company sold to Panasonic Company merchandise having a sale price of $8,500 with term of 4/10, n/90, F.O.B shipping point.
On December 8 an invoice totaling $250, terms n/30, was received by Panasonic from FedEx Transport Service for the freight cost.
On December 12, Cisco received a check for the balance due from Panasonic Company.
Instructions
Prepare journal entries on Cisco Company books to record all the events noted above under each of the following bases:
a) Sales and receivables are entered at gross selling price.
b) Sales and receivables are entered at net of cash discounts.
Prepare the journal entry under basis 2, assuming that Panasonic Company did not remit payment until January 29
Best Answer
Chosen by Asker
December 3 (a)
Debit Accounts Receivable 8,500
Credit Sales 8,500
December 3 (b)
Debit Accounts Receivable 8,160
Credit Sales 8,160
[8,500 x 96% = 8,160]
December 8 (a) and (b)
No entry on Cisco's books
December 12 (a)
Debit Cash 8,160
Debit Sales Discounts 340
Credit Accounts Receivable 8,500
[8,500 x 4% = 340]
December 12 (b)
Debit Cash 8,160
Credit Accounts Receivable 8,160
January 29
Debit Cash 8,500
Credit Accounts Receivable 8,160
Credit Miscellaneous Revenue 340
