On October 18, 2013, Flying Chicken sold 2,000 pounds of chicken to Healthier Grocery for $3,400, subject to terms 2/10, n30. Flying Chicken uses the gross method of accounting for sales discounts.
Required:
1. Prepare the journal entry to record the sale.
2. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on October 26, 2013.
3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on November 15, 2013.

Question

Quizplus · Accepted Answer

The Answer of On October 18, 2013, Flying Chicken sold 2,000 pounds of chicken to Healthier Grocery for $3,400, subject to terms 2/10, n30. Flying Chicken uses the gross method of accounting for sales discounts.
Required:
1. Prepare the journal entry to record the sale.
2. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on October 26, 2013.
3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on November 15, 2013.

On October 18, 2013, Flying Chicken Sold 2,000 Pounds of Chicken