
(a)
Sales discounts:
The term
Gross method:
Under this method, the revenues are recorded at gross amount of sales i.e. without taking the effect of any discount at the time of sales.
The journal entries for Nevada for recording the sales at gross.

Answer to Problem 78E
The journal entries for sales transactions at gross amount is debiting the
Explanation of Solution
The Nevada provides services at
The
Date | Particulars | Debit ($) | Credit ($) |
Accounts Receivable...... Sales.......... (Record the sales of service) |
(b)
Sales discounts:
The term
Gross method:
Under this method, the revenues are recorded at gross amount of sales i.e. without taking the effect of any discount at the time of sales.
The journal entry for the receiving payment within

Answer to Problem 78E
The
Explanation of Solution
The Nevada provides services at
The journal entry for Nevada is as follows:
Date | Particulars | Debit ($) | Credit ($) |
Cash......... Sales discount…...... Accounts Receivable..... (Record the receiving of revenue of service contact within the discount period of |
(c)
Sales discounts:
The term
Gross method:
Under this method, the revenues are recorded at gross amount of sales i.e. without taking the effect of any discount at the time of sales.
The journal entry for the receiving payment after

Answer to Problem 78E
The adjusting entry for recording the payment receivable of sales is by debiting cash by
Explanation of Solution
The Nevada provides services at
The journal entry for Sims is as follows:
Date | Particulars | Debit ($) | Credit ($) |
Cash......... Accounts Receivable..... (Record the receiving of revenue of service contact within the discount period of |
(d)
Sales discounts:
The term
To calculate:
The amount of interest the customer of Nevada be willing to pay for taking benefit of discount period.

Answer to Problem 78E
The amount of interest will be
Explanation of Solution
If the customer of Nevada did not pay the amount of
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