Scribd Logo
Upload

Welcome to Scribd!

  • Question 4

    Uploaded by

    Mary Charmaine Realino
    2 views1 page
    Glow Industries sells 240 strobe lights to a customer on May 9 for P40 per light, with a cost to Glow of P23 per light. The terms are 5/15, n/40 with an invoice date of May 9. On May 13, the customer discovers 50 lights are the wrong color and receives a P10 allowance per light. On May 21, the customer pays for the lights less the allowance. Journal entries are made on May 9 to record the sale, on May 13 to record the returned lights and allowance, and on May 21 to record payment less the discount.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Glow Industries sells 240 strobe lights to a customer on May 9 for P40 per light, with a cost to Glow of P23 per light. The terms are 5/15, n/40 with an invoice date of May 9. On May 13, the customer discovers 50 lights are the wrong color and receives a P10 allowance per light. On May 21, the customer pays for the lights less the allowance. Journal entries are made on May 9 to record the sale, on May 13 to record the returned lights and allowance, and on May 21 to record payment less the discount.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    2 views1 page

    Question 4

    Uploaded by

    Mary Charmaine Realino
    Glow Industries sells 240 strobe lights to a customer on May 9 for P40 per light, with a cost to Glow of P23 per light. The terms are 5/15, n/40 with an invoice date of May 9. On May 13, the customer discovers 50 lights are the wrong color and receives a P10 allowance per light. On May 21, the customer pays for the lights less the allowance. Journal entries are made on May 9 to record the sale, on May 13 to record the returned lights and allowance, and on May 21 to record payment less the discount.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    Question 4

    Glow Industries sells 240 strobe lights at P40 per light to a customer on May 9. The cost to Glow
    is P23 per light. The terms of the sale are 5/15, n/40, invoice dated May 9. On May 13, the customer
    discovers 50 of the lights are the wrong color and are granted an allowance of P10 per light for the
    error. On May 21, the customer pays for the lights, less the allowance.

    Required: Journal entry or entries for each of the transactions above. Show your
    computation

    May 9

    Glow Industries sells 240 strobe lights at P40 per light to a customer on May 9. The cost to Glow
    is P23 per light. The terms of the sale are 5/15, n/40, invoice dated May 9.

    Accounts Receivables 9,600

    Sales 9,600

    Solution: P40 x 240 = P9,600

    My 13

    The customer discovers 50 of the lights are the wrong color and are granted an allowance of P10
    per light for the error.

    Sales Returns 500

    Accounts Receivables 500

    Solution: P10 x 50 = P500

    May 21

    The customer pays for the lights, less the allowance.

    Cash 8,645

    Sales Discounts 455

    Accounts Receivables 9,100

    Solution: P9,600 – P500 = 9,100

    P9,100 x 5% = 455

    P9,100 – 455 = 8,645

    You might also like