Question
Asked Feb 10, 2019

Sold merchandise that cost $800 to art co. For $1200 under credit terms of 2/15, n/60,FOB shipping point, invoice dated July 19. How do I get
Cash credit/debit
Sales discounts. credit/debit
Accounts receivable-Art. credit/debit

check_circleExpert Solution
Step 1

Transaction need to be xplained in two parts:

First part is when the goods have been sold on credit. In that part, goods of the cost price of $ 800 has been sold for $ 1200. That means the sales revenue is $ 1200 and Accounts receivable increased by $ 1200. The cost of goods sold is $ 800 which also reduces the Merch...

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