On December 1, Macy Company sold merchandise with a selling price of $6000 on account to Mrs. Jorgensen, with terms 5/10, n/30. On December 3, Mrs. Jorgensen returned merchandise with a selling price of $500. Mrs. Jorgensen paid the amount due on December 9. What journal entry did Macy Company prepare on December 9?

Question

Quizplus · Accepted Answer

Mrs. Jorgensen paid within the discount period, so she is entitled to a 5% discount on the net amount after the return. The net amount is $6000 - $500 = $5500. The discount is 5% of $5500, which is $275. Therefore, the amount paid is $5500 - $275 = $5225. Macy Company debits Cash for $5225 and credits Accounts Receivable for $5225.

On December 1, Macy Company Sold Merchandise with a Selling