Problem 4-6 (IAA)On February 14, 2019, Prime Company sold 50 ainconditioning units. The sale price for each unit is P50,000All of the sales are sujbect to terms 2/10, n30. The entityused the net method of accounting for accounts receivable.Required:1. Prepare the journal entry to record the sale.2. Prepare the journal entry to record receipt of the paymentassuming the correct amount was received on February24, 2019.3. Prepare the journal entry to record receipt of thepayment, assuming the correct amount was received onMarch 10, 2019.Problem 4-7 (IAA)Raven Company started business in March 2019. Sales forthe first year totaled P4,000,000. The entity priced itsmerchandise to yield a 40% gross profit based on sales.Industry statistics suggest that 10% of the merchandise soldto customers will be returned.The entity estimated sales returns based on the industryaverage. During the year, customers returned goods withsale price of P300,000.Required:Prepare journal entries to record sales, sales returns andthe year-end adjusting entry for. estimated sales returns.

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On February 14, 2019, Prime Company sold 50 ain conditioning units. The sale price for each unit is P50,000 All of the sales are sujbect to terms 2/10, n30. The entity used the net method of accounting for accounts receivable. Required: 1. Prepare the journal entry to record the sale. 2. Prepare the journal entry to record receipt of the payment assuming the correct amount was received on February 24, 2019. 3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on March 10, 2019.

On February 14, 2019, Prime Company sold 50 ain conditioning units. The sale price for each unit is P50,000 All of the sales are sujbect to terms 2/10, n30. The entity used the net method of accounting for accounts receivable. Required: 1. Prepare the journal entry to record the sale. 2. Prepare the journal entry to record receipt of the payment assuming the correct amount was received on February 24, 2019. 3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on March 10, 2019.

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 81BPSB

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