Prepare the journal entry(ies) to record the sale and related cost of goods sold for Riverbed Company on January 2, 2020, and the payment on January 28, 2020. Assume that Riverbed Company records the January 2, 2020, transaction using the net metho
Prepare the journal entry(ies) to record the sale and related cost of goods sold for Riverbed Company on January 2, 2020, and the payment on January 28, 2020. Assume that Riverbed Company records the January 2, 2020, transaction using the net metho
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 15EB: Rain T-Shirts issued a $440,600 note on January 1, 2018 to a customer, Larry Potts, in exchange for...
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Question
Riverbed Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $659,900 (cost of $460,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,900. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Riverbed for the full sales price.
Prepare the journal entry (ies) to record the sale and related cost of goods sold for Riverbed Company on January 2, 2020, and the payment on January 28, 2020. Assume that Riverbed Company records the January 2, 2020, transaction using the net method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
choose a transaction date Jan. 2, 2020Jan. 28, 2020
|
enter an account title to record sales
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record sales
|
enter a debit amount
|
enter a credit amount
|
|
(To record sales)
|
|||
enter an account title to record cost of goods sold
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record cost of goods sold
|
enter a debit amount
|
enter a credit amount
|
|
(To record cost of goods sold)
|
|||
choose a transaction date Jan. 2, 2020Jan. 28, 2020
|
enter an account title to record payment received
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record payment received
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record payment received
|
enter a debit amount
|
enter a credit amount
|
|
(To record payment received)
|
Prepare the journal entry(ies) to record the sale and related cost of goods sold for Riverbed Company on January 2, 2020, and the payment on January 28, 2020. Assume that Riverbed Company records the January 2, 2020, transaction using the gross method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
choose a transaction date Jan. 2, 2020Jan. 28, 2020
|
enter an account title to record sales
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record sales
|
enter a debit amount
|
enter a credit amount
|
|
(To record sales)
|
|||
enter an account title to record cost of goods sold
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record cost of goods sold
|
enter a debit amount
|
enter a credit amount
|
|
(To record cost of goods sold)
|
|||
choose a transaction date Jan. 2, 2020Jan. 28, 2020
|
enter an account title to record payment received
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record payment received
|
enter a debit amount
|
enter a credit amount
|
|
(To record payment received)
|
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