Problem #2On May 15, 2021, the Guzon Book Distributors acquired for resale books on accountwith a list price of P108,000. Butuan Publishing, the supplier, allowed a 15% tradediscount as well as credit terms of 2/10, n/30. Guzon paid the invoice in full on May 20,2021.Required:Prepare the journal entries for Guzon Book Distributors.

Trade discount (List price * Rate of discount) = P108,000 * 15% P16,200 A Balance amount payable…

Answered: e journal entries

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 35CE: Notes Receivable Link Communications programs voicemail systems for businesses. For a recent...

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Laminate Express extended credit to customer Amal Sunderland in the amount of $244,650 for his January 4 purchase of flooring. Terms of the sale are 2/30, n/120. The cost of the purchase to Laminate Express is $88,440. On April 5, Laminate Express determined that Amal Sunderlands account was uncollectible and wrote off the debt. On June 22, Amal Sunderland unexpectedly paid 30% of the total amount due in cash on his account. Record each Laminate Express transaction with Amal Sunderland. In order to demonstrate the write-off and then subsequent collection of an account receivable, assume in this example that Laminate Express rarely extends credit directly, so this transaction is permitted to use the direct write-off method. Remember, though, that in most cases the direct write-off method is not allowed.
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