On November 1, Magily Company sold goods on account for $5,000. The terms of the sale were
Question:
On November 1, Magily Company sold goods on account for $5,000. The terms of the sale were 3/10, n/40. Payment in satisfaction of $2,000 of this amount was received on November 9. Payment in satisfaction of the remaining $3,000 was received on December 9.
1. How much cash did Magily Company collect from this $5,000 account?
2. Using the gross method, what journal entries would Magily make on November 9 and December 9?
3. Using the net method, what journal entries would Magily make on November 9 and December 9?
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1 Cash collected on November 9 2000 X 097 1940 Cash collected on December 9 3000 ...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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