Supermarkets Super Cash and Carry bought merchandise on credit from its suppliers for $100,000, with terms of 2/10,

Question

Supermarkets Super Cash and Carry bought merchandise on credit from its suppliers for $100,000, with terms of 2/10, n/30. The company returned $10,000 in damaged merchandise for which it received a credit. a. What transaction must be registered if the supermarket pays the invoice within the period that includes the discount? b. Determine the entry and the amount that will be registered to acknowledge the return. General JournalAccountDebitCredit

Help In Homework · Accepted Answer

a. Sales 100,000 Sales Returns 10,000 Net Sales 90,000 Discounted Rate 98% Cash Collections 88,200 b. Accounts Receivables 100,000 Sales 100,000 To record the sale. Sales Returns and Allowances 10,000 Accounts Receivables 10,000 To record the sales return. Cash 88,200 Sales Discount 1,800 Accounts Receivables 90,000 To record the collection.

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Supermarkets Super Cash and Carry bought merchandise on credit from its suppliers for $100,000, with terms of 2/10, n/30

Expert Solution

Archived Solution

Sales	100,000
Sales Returns	10,000
Net Sales	90,000
Discounted Rate	98%
Cash Collections	88,200

Accounts Receivables	100,000
Sales		100,000
To record the sale.

Sales Returns and Allowances	10,000
Accounts Receivables		10,000
To record the sales return.

Cash	88,200
Sales Discount	1,800
Accounts Receivables		90,000
To record the collection.