2.5. On June 14, 2013, Rumsfeld Company sold 100 units of material to Powell Heating and Cooling on account. The units list for 12.000.000 (excluding 10% VAT). On June 15, Powell was granted a 25% discount on total amount of the invoice due to some defects in the material. On June 25, Powell had tranferred money to fully pay (net amount) for the goods. Required: a/ Prepare the journal entry to record the sale. b/ Given the fact that Rumsfeld Company offers 1% discount for all of payment made within 15 day from shipping, prepare the journal entry to record the sale and the payment.
2.5. On June 14, 2013, Rumsfeld Company sold 100 units of material to Powell Heating and Cooling on account. The units list for 12.000.000 (excluding 10% VAT). On June 15, Powell was granted a 25% discount on total amount of the invoice due to some defects in the material. On June 25, Powell had tranferred money to fully pay (net amount) for the goods. Required: a/ Prepare the journal entry to record the sale. b/ Given the fact that Rumsfeld Company offers 1% discount for all of payment made within 15 day from shipping, prepare the journal entry to record the sale and the payment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2.5. On June 14, 2013, Rumsfeld Company sold 100 units of material to Powell Heating and
Cooling on account. The units list for 12.000.000 (excluding 10% VAT). On June 15, Powell
was granted a 25% discount on total amount of the invoice due to some defects in the
material. On June 25, Powell had tranferred money to fully pay (net amount) for the goods.
Required: a/ Prepare the journal entry to record the sale.
b/ Given the fact that Rumsfeld Company offers 1% discount for all of payment made within 15 day from
shipping, prepare the journal entry to record the sale and the payment.
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