On April 1 Moloney Meat Distributors sold merchandise on acc

On April 1, Moloney Meat Distributors sold merchandise on account to Fronke’s Franks for $3,500 on Invoice 1001, terms 2/10, n/30. Payment was received in full from Fronke’s Franks, less discount, on April 10.


Required:
Record the transactions on April 1 and April 10.

Solution

Date account titles & Explanations Debit Credit 1-Apr Account receivable 3,500 Sale revenue 3,500 10-Apr Cash (3500*98%) 3430 Sales discount 70 Account receivable 3,500