Gazoo Co. sold goods with a list price of $45,000 (gross billings) on terms of 2/10, n/30 on December 14, 2014. Accounts receivable and sales were recorded using the net method. By December 23, Gazoo had collected on $25,000 (gross billings) of these receivables. On January 2, additional collections were made on sales of $5,000 (gross billings) and sales returns and allowances of $3,000 (gross billings) were granted by Gazoo. On January 15, 2015, all remaining balances were collected.
Required:
Prepare journal entries for the following:
a.Collections received by December 23, net method of accounting for sales discounts.
b.Any required adjustment, December 31, net method.
c.Sales returns and allowances granted on January 2, net method.
d.Collections received on January 15, net method.

Question

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The Answer of Gazoo Co. sold goods with a list price of $45,000 (gross billings) on terms of 2/10, n/30 on December 14, 2014. Accounts receivable and sales were recorded using the net method. By December 23, Gazoo had collected on $25,000 (gross billings) of these receivables. On January 2, additional collections were made on sales of $5,000 (gross billings) and sales returns and allowances of $3,000 (gross billings) were granted by Gazoo. On January 15, 2015, all remaining balances were collected.
Required:
Prepare journal entries for the following:
a.Collections received by December 23, net method of accounting for sales discounts.
b.Any required adjustment, December 31, net method.
c.Sales returns and allowances granted on January 2, net method.
d.Collections received on January 15, net method.

Gazoo Co Sold Goods with a List Price of $45,000 (Gross