Belkin Company offers a cash discount of 2% if payment is received within 15 days, with full
Question:
1. Suppose that on June 14, Alvarez Company paid the appropriate amount to Belkin.
a. Prepare Belkin Company’s journal entries on June 1 and June 14 assuming that Belkin used the gross method to account for cash discounts.
b. Prepare Belkin Company’s journal entries on June 1 and June 14 assuming that Belkin used the net method to account for cash discounts.
2. Suppose instead, that on June 30 Alvarez Company paid the appropriate amount to Belkin.
a. Prepare Belkin Company’s journal entries on June 1 and June 30 assuming that Belkin used the gross method to account for cash discounts.
b. Prepare Belkin Company’s journal entries on June 1 and June 30 assuming that Belkin used the net method to account for cash discounts.
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1a June 1 Accounts receivable 10000 Sales revenue 10000 June 14 Cash 9800 Cash discoun...View the full answer
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Related Book For 
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
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