During the months of January and February Silver Corporation sold
During the months of January and February, Silver Corporation sold goods to three customers on open account. The sequence of events was as follows: Jan. 6 Sold goods for $ 850 to S. Green and billed that amount subject to terms of 2/ 10, n/ 30. 9 Sold goods to M. Munoz for $ 700 and billed that amount subject to terms of 2/ 10, n/ 30. 14 Collected cash due from S. Green. Feb. 2 Collected cash due from M. Munoz. 28 Sold goods for $ 450 to R. Reynolds and billed that amount subject to terms of 2/ 10, n/ 45.
Required:
1. Assuming that sales discounts are treated as contra revenues, compute net sales for the two months ended February 28.
2. Prepare the journal entries to record the transactions that occurred on January 6 and 14.
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