Using the information in E6-10, prepare journal entries to record the transactions, assuming Solitare records discounts using
Question:
Using the information in E6-10, prepare journal entries to record the transactions, assuming Solitare records discounts using the gross method in a perpetual inventory system.
Data From E6-10
During the months of January and February, Solitare Corporation sold goods to two customers. The sequence of events was as follows:
Jan. 6 Sold goods for $100 to Wizard Inc. with terms 2/30, n/60. The goods cost Solitare $70.
6 Sold goods to Spyder Corp. for $80 with terms 5/10, n/60. The goods cost Solitare $60.
14 Collected cash for the amount due from Wizard Inc.
Feb. 28 Collected cash for the amount due from Spyder Corp.
Required:
Compute the total revenue Solitare would report over the two months.
Step by Step Answer:
Fundamentals Of Financial Accounting
ISBN: 9781265440169
7th Edition
Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby