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

1 year ago - 1 answers

Best Answer

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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

1 year ago