On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. How would Flores record the sale on November 10?

Question

Business

Beckham Campos

2 June, 16:53

On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. How would Flores record the sale on November 10?

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Answers (1)

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Janelle Price · Answer 1

The journal entry to record the sale is shown below:

Explanation:

The journal entry which is to be recorded for the sale is as follows:

On November 10,

Accounts Receivable A/c ... Dr $8,000

Sales A/c ... Cr $8,000

As the sale made by the Flores on November 10, therefore, the sales account is credited with the amount. And the sale is made against the Account receivable account which is debited because the payment is not made yet as there are conditions of the credit term which is to be followed. So, the account receivable is created.