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On February 14, 2019, Prime Company sold 50 air conditioning units. The sale price for each unit is P50,000. All of the sales are sujbect to terms 2/10, n30. The entity used the net method of accounting for accounts receivable.

On February 14, 2019, Prime Company sold 50 air conditioning units. The sale price for each unit is P50,000. All of the sales are sujbect to terms 2/10, n30. The entity used the net method of accounting for accounts receivable.

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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Problem 4-6 (IAA) On February 14, 2019, Prime Company sold 50 air conditioning units. The sale price for each unit is P50,000. All of the sales are sujbect to terms 2/10, n30. The entity used the net method of accounting for accounts receivable. Required: 1. Prepare the journal entry to record the sale. 2. Prepare the journal entry to record receipt of the payment assuming the correct amount was received on February 24, 2019. 3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on March 10, 2019.
Transcribed Image Text:Problem 4-6 (IAA) On February 14, 2019, Prime Company sold 50 air conditioning units. The sale price for each unit is P50,000. All of the sales are sujbect to terms 2/10, n30. The entity used the net method of accounting for accounts receivable. Required: 1. Prepare the journal entry to record the sale. 2. Prepare the journal entry to record receipt of the payment assuming the correct amount was received on February 24, 2019. 3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on March 10, 2019.
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