Prepare the journal entry to record the collection

Assignment Help Accounting Basics

Reference no: EM133901426

Problem

AquaZone Company, a manufacturer of water heaters, sold 2,000 units on October 2 of the current year. The units have a list price of $425 each, but the customer was given a 30% trade discount. The terms of the sale were 2/10, n/30. Required: Assume AquaZone uses the gross method of accounting for cash discounts. Prepare the journal entry to record the sale on October 2 assuming that the gross method of accounting for cash discounts is used (ignore cost of goods). Assume the customer pays the amount due on October 10, 2022. Prepare the journal entry to record the collection. Assume the customer pays the amount due on November 6, 2022. Prepare the journal entry to record the collection. Assume AquaZone uses the net method of accounting for cash discounts. Prepare the journal entry to record the sale on October 2 assuming that the net method of accounting for cash discounts is used (ignore cost of goods). Get the instant assignment help. Assume the customer pays the amount due on October 10, 2022. Prepare the journal entry to record the collection.

Reference no: EM133901426

Questions Cloud

Georgia Non-Exclusive Buyer Brokerage Agreement : What's the difference between the Georgia Non-Exclusive Buyer Brokerage Agreement and the Georgia Exclusive Brokerage Agreement?

What extent should total quality management : To what extent should total quality management and quality control be considered when establishing an online retail presence.

Zeke represents seller and receives offer another agent : Zeke represents a seller and receives an offer through another agent. The offer is higher than the listing price.

Explore factors such as barriers to effective communication : Explore factors such as barriers to effective communication, technological issues, levels of engagement, and differences in time zones.

Prepare the journal entry to record the collection : Assume the customer pays the amount due on October 10, 2022. Prepare the journal entry to record the collection.

Gail was guilty of not adhering to which aspect of contract : Gail was supposed to close on her new home by the end of May, Gail was guilty of not adhering to which aspect of the contract?

Under what circumstances might consolidation be required : Under what circumstances might consolidation be required even though the parent does not control the subsidiary?

What is statutory right of redemption : What is a statutory right of redemption? Unset starred question A legal right of every borrower to cure a default and reinstate the loan

Discuss the two most interesting aspects of ethics training : Discuss the two most interesting aspects of ethics training that you have learned about from the required learning content this week.

User Account

All Pages