Answer:
Explanation:
The journal entries are shown below:
a. Accounts receivable A/c Dr $45,000
To Sales revenue A/c $45,000
(Being merchandise sold on credit)
Cost of goods sold A/c Dr $30,000
To Merchandise inventory A/c $30,000
(Being merchandise sold on cost)
b. Sales return and allowance A/c Dr $4,000
To Accounts receivable $4,000
(Being sales return is recorded)
Merchandise inventory A/c Dr $2,400
To Cost of goods sold A/c $2,400
(Being sales return is recorded)
c. Cash A/c Dr $40,590
Sales Discount A/c Dr $410
To Accounts receivable $41,000
(Being cash received recorded)
The computation of the account receivable
= Credit sales - returned goods
= $45,000 - $4,000
= $41,000
And, the discount would be
= Accounts receivable × percentage given
= $41,000 × 1%
= $410
The remaining amount would be credited to the cash account.
