Asia Company sold $10,000 of goods to Euro Company on credit on May 1. At the time of the sale, Asia recorded a debit to Accounts Receivable and a credit to Sales Revenue for $10,000. Terms were 2/10, n/30.
Required:
Prepare the journal entries Asia Company would record for each of the following situations:
A.Euro paid the balance due, less the discount, on May 10.
B.Euro returned half of the goods for credit on May 4.Euro paid the balance due, less the discount, on May 10.
C.Euro paid its bill on May 30 (there were no sales returns).

Question

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The Answer of Asia Company sold $10,000 of goods to Euro Company on credit on May 1. At the time of the sale, Asia recorded a debit to Accounts Receivable and a credit to Sales Revenue for $10,000. Terms were 2/10, n/30.
Required:
Prepare the journal entries Asia Company would record for each of the following situations:
A.Euro paid the balance due, less the discount, on May 10.
B.Euro returned half of the goods for credit on May 4.Euro paid the balance due, less the discount, on May 10.
C.Euro paid its bill on May 30 (there were no sales returns).

Asia Company Sold $10,000 of Goods to Euro Company on Credit