Bolton sold a customer service contract with a price of $37,000 to Sammy's Wholesale Company. Bolton offered terms of 1/10, n/30 and uses the gross method.Required:  Hide  Prepare the journal entry assuming the payment is made after 10 days (after the discount period).       Account and ExplanationDebitCredit         Record collection of accounts receivable

Question
Asked Oct 2, 2019

Bolton sold a customer service contract with a price of $37,000 to Sammy's Wholesale Company. Bolton offered terms of 1/10, n/30 and uses the gross method.

Required:

 

  Hide    

Prepare the journal entry assuming the payment is made after 10 days (after the discount period).



 
 
       
 
Account and Explanation
Debit
Credit
 
 
 
 
 
 
 
 
 
Record collection of accounts receivable
   
       

 

 

 

check_circleExpert Solution
Step 1

The required journa...

Post Debit
(S)
37,000
Credit
Account Title and Explanation
Date
(S)
Ref.
Cash
Accounts receivable
(to record the payment received after
|discount period)
37,000
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Post Debit (S) 37,000 Credit Account Title and Explanation Date (S) Ref. Cash Accounts receivable (to record the payment received after |discount period) 37,000

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