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9 August, 19:29

July 1 Sold $20,000 of computers to Robertson Company with terms 3/15, n/60. Perez uses the gross method to record cash discounts. Perez estimates allowances of $1,300 will be honored on these sales. 10 Perez received payment from Robertson for the full amount owed from the July transactions. 17 Sold $200,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Perez for its purchase of July 17. Instructions Prepare the necessary journal entries for Perez Computers.

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  1. 9 August, 21:35
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    Journal entries

    Explanation:

    The journal entries are as follows

    On July 1

    Accounts receivable Dr $20,000

    To Sales revenue $20,000

    (Being the sales is recorded on account)

    On July 10

    Cash $19,400

    Sales discount $600 ($20,000 * 3%)

    To Accounts receivable $20,000

    (Being the payment received is recorded)

    On July 17

    Accounts receivable $200,000

    To Sales revenue 200,000

    (Being the sales is recorded on account)

    On July 30

    Cash $200,000

    To Accounts receivable $200,000

    (Being the payment received is recorded)
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