Valix Finacc vol 1 Problem 5-9

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 1 Problem 5-9

            Gross method                                                              Net method

July  1  Accounts receivable        50,000                      July  1  Accounts receivable        49,000                

                   Sales                                                   50,000                       Sales                                                    49,000

2  Accounts receivable      200,000                              2  Accounts receivable       196,000

                   Sales                                                 200,000                        Sales                                                  196,000

     12  Cash                                     196,000                               12  Cash                                      196,000

           Sales discount                         4,000                                           Accounts receivable                   196,000

                 Accounts receivable                   200,000                  

     30  Cash                                       50,000                              30  Cash                                        50,000

                  Accounts receivable                   50,000                         Accounts receivable                     49,000                                                                                                                    Sales discount forfeited                  1,000