Willy Company sold on credit merchandise having a list price of P200,000 with the following terms: trade discount of 10% and 5%; cash discount of 3% if the account is paid within 10 days from the invoice date; full amount is due in 30 days. If Willy Company uses the gross price method, what are the accounts and amounts debited upon collection within the discount period? a. Cash, 194,000; Sales Discounts, 6,000 b. Cash 165,870 c. Cash, 165,870; Sales Discounts, 5,130
Willy Company sold on credit merchandise having a list price of P200,000 with the following terms: trade discount of 10% and 5%; cash discount of 3% if the account is paid within 10 days from the invoice date; full amount is due in 30 days. If Willy Company uses the gross price method, what are the accounts and amounts debited upon collection within the discount period? a. Cash, 194,000; Sales Discounts, 6,000 b. Cash 165,870 c. Cash, 165,870; Sales Discounts, 5,130
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter10: Accounting For Sales And Cash Receipts
Section: Chapter Questions
Problem 2CE: Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is...
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36.Willy Company sold on credit merchandise having a list price of P200,000 with the following terms: trade discount of 10% and 5%; cash discount of 3% if the account is paid within 10 days from the invoice date; full amount is due in 30 days.
If Willy Company uses the gross price method, what are the accounts and amounts debited upon collection within the discount period?
If Willy Company uses the gross price method, what are the accounts and amounts debited upon collection within the discount period?
a. Cash, 194,000; Sales Discounts, 6,000
b. Cash 165,870
c. Cash, 165,870; Sales Discounts, 5,130
d. Cash, 171,000; Sales Discounts Forfeited, 5,130
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