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- An entity sells inventory with a list price of P10,000 under credit terms of 20%, 10%, 2/15, n/30. The entity uses PFRS 15 and estimates that only 80% of the cash discount will be taken. By the end of the reporting period, the account receivable is not yet settled and the entity changes its estimate of cash discount to be taken to 40%. equirements: Provide the journal entry on the date of sale and the year-end adjusting entry.

- An entity sells inventory with a list price of P10,000 under credit terms of 20%, 10%, 2/15, n/30. The entity uses PFRS 15 and estimates that only 80% of the cash discount will be taken. By the end of the reporting period, the account receivable is not yet settled and the entity changes its estimate of cash discount to be taken to 40%. equirements: Provide the journal entry on the date of sale and the year-end adjusting entry.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer requirement a. Thanks.
2. An entity sells inventory with a list price of P10,000 under credit terms of 20%, 10%, 2/15, n/30. The entity uses PFRS 15 and estimates that only 80% of the cash discount will be taken. By the end of the reporting period, the account receivable is not yet settled and the entity changes its estimate of cash discount to be taken to 40%. Requirements: a. Provide the journal entry on the date of sale and the year-end adjusting entry.
Transcribed Image Text:2. An entity sells inventory with a list price of P10,000 under credit terms of 20%, 10%, 2/15, n/30. The entity uses PFRS 15 and estimates that only 80% of the cash discount will be taken. By the end of the reporting period, the account receivable is not yet settled and the entity changes its estimate of cash discount to be taken to 40%. Requirements: a. Provide the journal entry on the date of sale and the year-end adjusting entry.
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