Citron Mechanical Systems makes all sales on credit, with terms 2/10, n/30. During 2009, the list price
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Citron Mechanical Systems makes all sales on credit, with terms 2/10, n/30. During 2009, the list price (prediscount) of goods sold was $498,500. Customers paid $350,000 (list price) of these sales within the discount period and the remaining $148,500 (list price) after the discount period. Citron uses the gross method of recording sales.
Required:
1. Compute the amount of sales that Citron recorded for 2009.
2. Compute the amount of cash that Citron collected from these sales.
3. Prepare a summary journal entry to record these sales and a second summary entry to record the cash collected.
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger
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