As a co-op student, you are working as an accounts receivable clerk at Asian Foods. The controller

Question:

As a co-op student, you are working as an accounts receivable clerk at Asian Foods. The controller asks you to record a customer payment from Liu and Li Co. The sales invoice is dated October 1, 2017 for $3,000 of tea and tapioca pearls. The payment terms are 4/20, n/60.
a. Determine the beginning and end date of the discount period.

b. Calculate the discount amount available.

c. If today is October 20, record the journal entry.

d. If today is October 23, record the journal entry.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...