Northern Company sold $4,000 of goods to Southern Company on credit on May 1. At the time of the sale, Northern recorded a debit to Trade Receivables and a credit to Sales Revenue for $4,000. Terms were 2/10, n/30. Required: Present the entries Northern would record for each of the following independent situations:
A. Southern paid the balance due, less the discount, on May 10.
B. Southern returned half of the goods for credit on May 4. Paid the balance due , less the discount, on May 10.
C. Southern paid their bill on May 30 (there were no returns).

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The Answer of Northern Company sold $4,000 of goods to Southern Company on credit on May 1. At the time of the sale, Northern recorded a debit to Trade Receivables and a credit to Sales Revenue for $4,000. Terms were 2/10, n/30. Required: Present the entries Northern would record for each of the following independent situations:
A. Southern paid the balance due, less the discount, on May 10.
B. Southern returned half of the goods for credit on May 4. Paid the balance due , less the discount, on May 10.
C. Southern paid their bill on May 30 (there were no returns).

Northern Company Sold $4,000 of Goods to Southern Company on Credit