contestada

Harvey's Wholesale Company sold supplies of $46,000 to Northeast Company on April 12 of the current year, with terms 1/15, n/60. Harvey uses the net method of accounting for sales discounts. What entry would Harvey's make on June 10, assuming the customer made the correct payment on that date?

Respuesta :

abiolataiwo2015

Answer:

Dr Cash 46,000

Cr Accounts receivable 45,540

Cr Interest revenue 460

Explanation:

Preparation of What journal entry would Harvey's make on June 10

Based on the information given we were told that the Company sold supplies of the amount of $46,000 to another company named Northeast Company on April 12 of the current year, which include a terms of 1/15, n/60, based on this the journal entry that Harvey's company will make on June 10, if the customer made the correct payment on that date will be:

Dr Cash 46,000

Cr Accounts receivable 45,540

(46,000-460)

Cr Interest revenue 460

(1%*46,000)

Otras preguntas