The company sells a 2/10, n/30 basis. Internet control quite weak, so the senior accountant in charge of the examination of the company's financial statements asked you to make a careful review of the Cash Receipts Book for the month of July, 2020, which is reproduced below. You are asked to compute the cash short or over. Cash ReceiptsCashAccountsDate AccountItemCashSalesDiscountReceivableP 7845887/5Bart6/12 invoiceP16P8007/10Carrie6/30 invoice12б007/11Cash Sales25257/12Bart7/1 invoice2943007/137/14 | AntonioCash Sales32327/3 invoice877239007/157/16Cash Sales3838Bart686147007/18Cash Sales30307/20 | Carrie7/20 | Cash Sales7/9 invoice578б001227277/27Bart7/16 invoice49010500P 4,439P 1421034,4006.

solution : concept of 2/10 n/30 the credit term 2/10 , n/30 means if the payment is…

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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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The company sells a 2/10, n/30 basis. Internet control quite weak, so the senior accountant in charge of the examination of the company's financial statements asked you to make a careful review of the Cash Receipts Book for the month of July, 2020, which is reproduced below. You are asked to
compute the cash short or over.

Cash Receipts
Cash
Accounts
Date Account
Item
Cash
Sales
Discount
Receivable
P 784
588
7/5
Bart
6/12 invoice
P
16
P
800
7/10
Carrie
6/30 invoice
12
б00
7/11
Cash Sales
25
25
7/12
Bart
7/1 invoice
294
300
7/13
7/14 | Antonio
Cash Sales
32
32
7/3 invoice
877
23
900
7/15
7/16
Cash Sales
38
38
Bart
686
14
700
7/18
Cash Sales
30
30
7/20 | Carrie
7/20 | Cash Sales
7/9 invoice
578
б00
12
27
27
7/27
Bart
7/16 invoice
490
10
500
P 4,439
P 142
103
4,400
6.

Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

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