More Info X al ent per eturns urna Aug 2 Sold merchandise o

More Info - X al ent per eturns urna Aug 2 Sold merchandise on account to Eva Baldwin, $700, terms 1/10, n/30. ries 10 Sold merchandise on account to Alicia Oswald, $2,700, terms 2/10, n/30. 11 Collected payment from Eva Baldwin for the August 2 sale. 15 Oswald returned $2,200 of the merchandise purchased on August 10 19 Collected payment from Alicia Oswald for the balance of the August 10 sale te Print Done

Solution

REQUIREMENT 1) Journal Entries Sr. No. Date Account Title and explanation Debit Credit Account Receivable - Eva Baldwin $700 1 Aug, 02     To Sales Revenue $700 2 Aug, 10 Account Receivable - Alicia Oswald $2,700     To Sales Revenue $2,700 3 Aug, 11 Cash ($ 700 X 99% ) $693 Sales Discount $7            To Account Receivable - Eva Baldwin $700 Sales Return and allowances $2,200 4 Aug, 15         To Account Receivable - Alicia Oswald $2,200 5 Aug, 19 Cash ($ 500 X 98% ) $490 Sales Discount $10         To Account Receivable - Alicia Oswald $500 REQUIREMENT 2) CALCULATION OF THE NET SALES OF THE MONTH OF AUGUST Sales $3,400 Less: Sales Discount $17 Less: Sales Return and allowances $2,200 Net Sales for the month of August $1,183