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11 February, 23:52

On March 12, Medical Waste Services provides services on account to Grace Hospital for $9,700, terms 2/10, n/30. Grace pays for those services on March 20.

Required:

For Medical Waste Services, record the service on account on March 12 and the collection of cash on March 20.

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Answers (1)
  1. 12 February, 02:52
    0
    1. Accounts receivable A/c Dr $9,700

    To Service revenue $9,700

    (Being service provided is recorded)

    2. Cash A/c Dr $9,506

    Sales Discount A/c Dr $194 ($9,700 * 2%)

    To Accounts receivable A/c $9,700

    (Being cash received recorded and the remaining balance is reported to the cash account in the debit side)

    Explanation:

    The journal entries are shown below

    On March 12

    Accounts receivable A/c Dr $9,700

    To Service revenue $9,700

    (Being service provided is recorded)

    On March 20

    Cash A/c Dr $9,506

    Sales Discount A/c Dr $194 ($9,700 * 2%)

    To Accounts receivable A/c $9,700

    (Being cash received recorded and the remaining balance is reported to the cash account in the debit side)
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