What are the related journal entries under the gross method and the net method? At month-end, how much is the entity's accounts receivable under the gross method? At month-end, how much is the entity's accounts receivable under the net method?
On January 15, 2021, Marimar Company shipped 100 cellphone units to Sergio Company.
The related data:
The list price per unit P5,200
Trade discount per unit 200
Freight charges paid in cash 3,500 FOB destination
Tem of payments 2/10, n/30
The invoice price is 60% based on sales.
On January 25, 2021, Sergio Company paid 50% of the total shipment.
The entity uses the perpetual inventory system.
Requirements:
- What are the related
journal entries under the gross method and the net method? - At month-end, how much is the entity's accounts receivable under the gross method?
- At month-end, how much is the entity's accounts receivable under the net method?
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