Prudential Company sold 30 air conditioning units, on January 15, 2020; sale price for each unit is P40,000. All of the sales are subject to terms 2/10, n30; the entity used the net method of accounting for accounts receivable. Required; 1. prepare journal entry to record the sale. 2. prepare the journal entry to record receipt of the payment assuming the correct amount was received on January 25, 2020. 3. prepare the journal entry to record receipt of the payment, assuming the correct amount was received on February 10, 2020.

Prudential Company sold 30 air conditioning units, on January 15, 2020; sale price for each unit is P40,000. All of the sales are subject to terms 2/10, n30; the entity used the net method of accounting for accounts receivable. Required; 1. prepare journal entry to record the sale. 2. prepare the journal entry to record receipt of the payment assuming the correct amount was received on January 25, 2020. 3. prepare the journal entry to record receipt of the payment, assuming the correct amount was received on February 10, 2020.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....

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