6 Problem 4-6 (IAA)On February 14, 2019, Prime Company sold 50 airconditioning units. The sale price for each unit is P50,000.All of the sales are sujbect to terms 2/10, n30. The entityused 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 paymentassuming the correct amount was received on February24, 2019.3. Prepare the journal entry to record receipt of thepayment, assuming the correct amount was received onMarch 10, 2019.

Sales Price-: The price that is reimbursed by the customer at the time when something is purchased…

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.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

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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