Question

The Urban Florist is a wholesale shop that sells flowers, plants, and plant supplies. Transactions involving sales and cash receipts for the firm during May 2016 follow. The firm sells its merchandise for cash and on open account. During May, The Urban Florist engaged in the following transactions

DATE TRANSACTIONS
2016
May 1 Sold floral arrangements for $450 to Annie’s Flowers; issued Invoice
9312 with terms of 2/10, n/30.
4 Received a check for $1,176 from Orange County Florist in payment of Invoice 9299 of April 25 ($1,200), less cash discount ($24).
6 Sold merchandise totaling $925 in cash to a new customer who has not yet established credit.
7 $25 of merchandise sold on May 6 is returned for a cash refund.
8 Sold floral arrangements for $1,500 to Rosa’s Flowers and Gifts; issued Invoice 9313 with terms of 2/10, n/30.
10 Received payment from Annie’s Flowers in payment of Invoice 9312, less cash discount.
14 Gave Rosa’s Flowers and Gifts an allowance because of withered flowers discovered in one of the floral arrangements sold on May 8, Invoice 9313; issued Credit Memorandum 109 for $200.
17 Received payment from Rosa’s Flowers and Gifts for the sale of May 8, less the return on May 14; Rosa’s Flowers and Gifts deducted the appropriate cash discount from their payment.
19 Received a check for $2,900 as payment in full from White Lily Florists, Inc. Invoice 9279 dated April 20.
20 Sold table arrangements to Grand Party Supply; issued Invoice 9314 for $580 with terms of 2/10, n/30.
24 Sold roses to Miyata Floral Designs for $480; issued Invoice 9315 with terms of 2/10, n/30.
26 Sold potted plants to Cancino’s Flower Shop for $850; issued Invoice 9316 with terms of 2/10, n/30.
27 Accepted a return of damaged roses from Miyata Floral Designs; issued Credit Memorandum 110 for $48. The original sale was made on Invoice 9315 on May 24.
29 Received payment from Grand Party Supply for the sale of May 20, less cash discount.
30 Sold plants for $1,200 to White Lily Flowers, Inc.; issued Invoice 9317 with terms of 2/10, n/30.

INSTRUCTIONS
Record the transactions in a general journal. Use 12 as the page number.
Analyze: What was the amount of the cash discount taken by Annie’s Flowers on May 10?



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  • CreatedAugust 08, 2014
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