On february 3, smart company sold merchandise in the amount of $2,600 to truman company, with credit terms of 2/10, n/30. the cost of the items sold is $1,800. smart uses the perpetual inventory system and the gross method. truman pays the invoice on february 8, and takes the appropriate discount. the journal entry that smart makes on february 8 is:

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Business

Darryl Webb

26 July, 13:03

On february 3, smart company sold merchandise in the amount of $2,600 to truman company, with credit terms of 2/10, n/30. the cost of the items sold is $1,800. smart uses the perpetual inventory system and the gross method. truman pays the invoice on february 8, and takes the appropriate discount. the journal entry that smart makes on february 8 is:

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Gael Flowers · Answer 1

The Journal Entry to be recorded in February 3 would be:

Debit Accounts Receivable 2600

Credit Sales 2600

Another entry would be:

Debit Cost of Goods Sold 1600

Credit Inventory 1600

For the payment within the discount period, the journal entry would be:

Debit Cash 2548

Debit Sales Discount 52 (2600 x 0.02)

Credit Accounts Receivable 2600