Help lemond record the journal entry on april 10

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: mond for cash on April 10. Help Lemond record the journal entry on April 10. 1/24/13 2:07 PM Gross sales Net sales Lemond GROSS SALES 180,000 Less: N/A NET SALES 180,000 Adjustments to Sales • Accounting for... - Trade discounts Impact GROSS sales - Sales discounts Sales returns Sales allowances Impact NET sales Gross sales Net sales GROSS SALES Less: Sales discounts Less: Sales returns Less: Sales allowances NET SALES OR JUST... SALES, NET Contra accounts Gross sales Net sales • A sales discount... - represents a reduction in the amount a credit customer has to pay if the customer pays by a specific date. If you pay early, you pay less Sales discounts • Terms - 2/10, n/30 The net amount is due in 30 days A 2% discount applies to any payments made within the first ten days Sales discounts On March 1 Viper Company sells $500,000 worth of goods to Wildcat Corporation on credit with terms of 5/5, n/20. • Help Viper record this transaction on March 1 • What is the entry if Wildcat pays on March 3? • What is the entry if Wildcat pays on March 21? Gross sales Net sales --If Wildcat paid on March 3-- GROSS SALES 500,000 25,000 475,000 Less: Sales discounts NET SALES Gross sales Net sales --If Wildcat paid on March 21-- GROSS SALES 500,000 Less: N/A NET SALES Gross sales 500,000 Net sales GROSS SALES Less: Sales discounts Less: Sales returns Less: Sales allowances NET SALES OR JUST... SAL...
View Full Document

This document was uploaded on 02/17/2014 for the course ACCTG 215 at University of Washington.

Ask a homework question - tutors are online