Presented below is information from Novak Computers Incorporated. July 1 10 17 30 Sold $25,600 of computers to Robertson Company with terms 3/15, n/60. Novak uses the gross method to record cash discounts. Novak estimates allowances of $1,664 will be honored on these sales. (Novak records these estimates at point of sale.) Novak received payment from Robertson for the full amount owed from the July transactions. Sold $256,000 in computers and peripherals to The Clark Store with terms of 2/10,n/30. The Clark Store paid Novak for its purchase of July 17. Prepare the necessary journal entries for Novak Computers. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What should I put for the red marked box if the answer is not "Allowance for sales returns and allowances"?

 

 

Presented below is information from Novak Computers Incorporated.
July 1
10
17
30
Prepare the necessary journal entries for Novak Computers. (If no entry is required, select "No Entry" for the account titles and enter O for
the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before
credit entries. Record journal entries in the order presented in the problem.)
Date
July 1
July 10
Sold $25,600 of computers to Robertson Company with terms 3/15, n/60. Novak uses the gross method to record cash
discounts. Novak estimates allowances of $1,664 will be honored on these sales. (Novak records these estimates at point
of sale.)
Novak received payment from Robertson for the full amount owed from the July transactions.
Sold $256,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30.
The Clark Store paid Novak for its purchase of July 17.
July 17
July 30
Account Titles and Explanation
Accounts Receivable
Sales Revenue
(To record sales revenue.)
Sales Returns and Allowances
Allowance for Sales Returns and Allowances
(To record allowance for sales returns.)
Cash
Sales Discounts
Accounts Receivable
Accounts Receivable
Sales Revenue
Cash
Accounts Receivable
Debit
25600
1664
24832
768
256000
256000
Credit
25600
1664
25600
256000
256000
Transcribed Image Text:Presented below is information from Novak Computers Incorporated. July 1 10 17 30 Prepare the necessary journal entries for Novak Computers. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date July 1 July 10 Sold $25,600 of computers to Robertson Company with terms 3/15, n/60. Novak uses the gross method to record cash discounts. Novak estimates allowances of $1,664 will be honored on these sales. (Novak records these estimates at point of sale.) Novak received payment from Robertson for the full amount owed from the July transactions. Sold $256,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. The Clark Store paid Novak for its purchase of July 17. July 17 July 30 Account Titles and Explanation Accounts Receivable Sales Revenue (To record sales revenue.) Sales Returns and Allowances Allowance for Sales Returns and Allowances (To record allowance for sales returns.) Cash Sales Discounts Accounts Receivable Accounts Receivable Sales Revenue Cash Accounts Receivable Debit 25600 1664 24832 768 256000 256000 Credit 25600 1664 25600 256000 256000
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