15.18 Y Ltd keeps a receivables ledger control account as part of its accounting system. The following transactions take place in March: mvolces totalling $5,000 are raised to Customer X in March. These invoices offer the customer a 5% discount if they pay within 14 days. Of these invoices, Y Ltd expects invoices amounting to $2,000 to be paid with the discount taken. (a) Customer Z pays cash of $2,850 for invoices with face values of $3,000. They took advantage of discounts totalling $150 for early payment, however Y Ltd had not expected Customer Z to take up the discounts. (b) Which of the following entries correctly record these transactions? DEBIT receivables ledger control $5,000, CREDIT sales $5,000, DEBIT cash $2,850, CREDIT receivables ledger control $2,850 DEBIT receivables ledger control $4,900, CREDIT sales $4,900, DEBIT cash $2,850, DEBIT sales $150, CREDIT receivables ledger control $3,000 B DEBIT receivables ledger control $5,000, CREDIT sales $5,000, DEBIT cash $2,850, DEBIT sales $150, CREDIT receivables ledger control $3,000 C

15.18 Y Ltd keeps a receivables ledger control account as part of its accounting system. The following transactions take place in March: mvolces totalling $5,000 are raised to Customer X in March. These invoices offer the customer a 5% discount if they pay within 14 days. Of these invoices, Y Ltd expects invoices amounting to $2,000 to be paid with the discount taken. (a) Customer Z pays cash of $2,850 for invoices with face values of $3,000. They took advantage of discounts totalling $150 for early payment, however Y Ltd had not expected Customer Z to take up the discounts. (b) Which of the following entries correctly record these transactions? DEBIT receivables ledger control $5,000, CREDIT sales $5,000, DEBIT cash $2,850, CREDIT receivables ledger control $2,850 DEBIT receivables ledger control $4,900, CREDIT sales $4,900, DEBIT cash $2,850, DEBIT sales $150, CREDIT receivables ledger control $3,000 B DEBIT receivables ledger control $5,000, CREDIT sales $5,000, DEBIT cash $2,850, DEBIT sales $150, CREDIT receivables ledger control $3,000 C

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 18E

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