A sales invoice totaling Rs 35,000 and dated January 14 has discount terms of 2/10, n/30. If it is paid January 23 and if paid January 27, what would be the entry to record this transaction?
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
- A sales invoice totaling Rs 35,000 and dated January 14 has discount terms of 2/10, n/30. If it is paid January 23 and if paid January 27, what would be the entry to record this transaction?
- Record the following transactions in the cash receipts journal: (Format is given Below)
March: 3 Received Rs 6000 from J.Ballin settlement of her
10 Received Rs 6150 from B. Elder in settlement of his account
14 Cash sales for a 2-week period, Rs 4,400
28 Sold Rs 2000 of office supplies to T.S Company (not a merchandiseitem)
30 Owner made additional investment, Rs 15,000
30 Cash sales for the last two weeks, Rs 2600
|
Date |
Account Credit |
Cash Dr. |
Ac. Rec Cr. |
Sales Income Cr. |
OE Cr. |
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