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15 November, 21:44

Record the following transactions on the books of Sheffield Corp. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) On July 1, Sheffield Corp. sold merchandise on account to Waegelein Inc. for $18,300, terms 2/10, n/30. (b) On July 8, Waegelein Inc. returned merchandise worth $4,800 to Sheffield Corp ... (c) On July 11, Waegelein Inc. paid for the merchandise.

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  1. 15 November, 23:26
    0
    On the date of sale:

    Dr Account receivables $18,300

    Cr Sales $18,300

    On the 8th July:

    Dr sales return $4,800

    Cr Accounts receivable $4,800

    On July 11:

    Dr Cash $13,230

    Dr Sales discount $270

    Cr Accounts receivables $13,500

    Explanation:

    The goods sold to Waegelein Inc would be recorded as sales as well as receivables since cash has not been received.

    Upon return of goods worth $4800 the receivables account would be credited with $4,800 to indicate that the indebtedness of Waegelein has reduced by the amount of sales return.

    Finally, the payment receipt is within the ten days discount period, hence the amount received is calculated as follows:

    Sales $18,300

    sales returns ($4,800)

    Balance $13500

    less discount

    $13500*2% ($270)

    Cash receipt $13,230
  2. 16 November, 00:06
    0
    Sheffield Corp

    A. Jul. 1

    Dr Accounts Receivable - Maxfield Inc. 18,300

    Cr Sales (To record sales on account) 18,300

    B. July 8

    Dr Sales Returns and Allowances 4,800

    Cr Accounts Receivable - Maxfield Inc. 3,800 (To record merchandise returned)

    C. July 11

    Dr Cash ($13,500 - $270) 13,230 Dr Sales Discounts ($13,500x. 020) 270

    Cr Accounts Receivable - Maxfield Inc. 13,500 (To record collection of accounts receivable)
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