Surplus Galore uses the gross method of accounting for sales discounts. Selected data from its records for
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Question:
Debit Credit
Sales $800,000
Accounts Receivable
$90,000
Allowance for Sales Discounts 1,200
Estimated sales discounts that will be taken in next fiscal year 1,400
Assume that Austin Maxwell pays his $400 receivable on January 3, taking the 2 percent discount to which he is entitled. Journalize the entry to record the transaction.
Related Book For
Managerial Accounting for Managers
ISBN: 978-0073527130
2nd edition
Authors: Eric Noreen, Peter Brewer, Ray Garrison
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