Presented below is information from Swifty Computers Incorporated. July 1 Sold $17,200 of computers to Robertson Company with terms 3/15, n/60. Swifty uses the gross method to record cash discounts. Swifty estimates allowances of $1,118 will be honored on these sales. 10 Swifty received payment from Robertson for the full amount owed from the July transactions. 17 Sold $172,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Swifty for its purchase of July 17.

Question

Business

Alonso Goodwin

5 April, 08:58

Presented below is information from Swifty Computers Incorporated. July 1 Sold $17,200 of computers to Robertson Company with terms 3/15, n/60. Swifty uses the gross method to record cash discounts. Swifty estimates allowances of $1,118 will be honored on these sales. 10 Swifty received payment from Robertson for the full amount owed from the July transactions. 17 Sold $172,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Swifty for its purchase of July 17.

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Addison Hunter · Answer 1

Solution and Explanation:

The following journal entries are passed in the books of accounts:

date Particulars Post ref. Debit Credit

1st july Accounts receivable 17200

Sales revenue 17200

(To record sales revenue)

1st July Sales return and allowances 1118

Allowance for sales return and allowance 1118

(to record allowance for sales return)

10th jluy Cash (17200 minus 516) 16684

Sales discount (17200 * 3%) 516

Accounts receivable 17200

(To record receipt and discount allowed)

17 july Accounts receivable 172000

Sales revenue 172000

30th july Cash 172000

Accounts receivable 172000