Answered: Hall Inc. made a $30,000 sale on…

Name: Hall Inc. made a $30,000 sale on account with the following terms: 2/1
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Hall Inc. made a $30,000 sale on account with the following terms: 2/10, n/30. If the company uses the net method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale?

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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Hall Inc. made a $30,000 sale on account with the following terms: 2/10, n/30. If the company uses the net method to record sales made on credit, what is/are the debit(s) in the journal entry to record the sale?

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Step 1: Introduction

In case of net method, the sales discount is not recorded only the net amount will be recorded in journal entry.

Sales value after discount = $30,000 -($30,000 ×2%)

= $30,000 - $600

= $29,400

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