Western Company sold $4,000 of goods to Southern Company on credit on May
1. At the time of the sale, Western 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 Western 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).

Question

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The Answer of Western Company sold $4,000 of goods to Southern Company on credit on May
1. At the time of the sale, Western 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 Western 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).

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