Journalize the following sales transactions for Outdoor Equipment using the periodic inventory system. Explanations are not required
July 1 Sold $4,200 of equipment on account, credit terms are 3/10, n/30, FOB destination
July 5 Paid $90 on freight out.
July 8 Negotiated a $240 allowance on the goods sold on July 1
July 11 Received payment from the customer for the full amount due on the July 1 sale.
What will be an ideal response
Date Accounts and Explanation Debit Credit
July 1 Accounts Receivable 4,200
Sales Revenue 4,200
July 5 Delivery Expense 90
Cash 90
July 8 Sales Returns and Allowances 240
Accounts Receivable 240
July 11 Cash ($3,960 - $118.80 ) 3,841.20
Sales Discounts ($3,960 x 0.03 ) 118.80
Accounts Receivable ($4,200 - $240 ) 3,960
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