Sales Discount Recorded Columbia Company provided services with a list price of $48,500 to Small Enterprises with terms 2/15, n/45. Columbia records sales to be reported in the financial statements. Required: 1. Prepare the entries to record this sale in Columbia's journal. (Record sale) 2. Prepare the entry for Columbia's journal to record receipt of cash in payment for the sale within the discount period. For those boxes in which no entry is required, leave the box blank. (Record collection within discount period) 3. Prepare the entry for Columbia's journal to record receipt of cash in payment for the sale after the discount period. (Record collection after discount period)
Sales Discount Recorded
Columbia Company provided services with a list price of $48,500 to Small Enterprises with terms 2/15, n/45. Columbia records sales to be reported in the financial statements.
Required:
1. Prepare the entries to record this sale in Columbia's journal.
| (Record sale) |
2. Prepare the entry for Columbia's journal to record receipt of cash in payment for the sale within the discount period. For those boxes in which no entry is required, leave the box blank.
| (Record collection within discount period) |
3. Prepare the entry for Columbia's journal to record receipt of cash in payment for the sale after the discount period.
| (Record collection after discount period) |
4. Assume that Columbia's customer does not have the available cash to pay Columbia within the discount period. How much interest should the customer be willing to pay for a loan to permit them to take advantage of the discount period (assuming no additional costs to the loan)?
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