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Romela Company (Gross Method)

This document provides journal entries for recording a sale by Romela Company using the gross method. It includes entries to record the initial sale, receipt of payment on June 25 at a discounted amount, and receipt of full payment on July 10. The first entry records the sale as a debit to Accounts Receivable and credit to Sales Revenue. The second entry records receipt of most payment as a debit to Cash and credit to AR, and the discount as an expense. The third entry records full payment as a debit to Cash and credit to AR.

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Anonn
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790 views

Romela Company (Gross Method)

This document provides journal entries for recording a sale by Romela Company using the gross method. It includes entries to record the initial sale, receipt of payment on June 25 at a discounted amount, and receipt of full payment on July 10. The first entry records the sale as a debit to Accounts Receivable and credit to Sales Revenue. The second entry records receipt of most payment as a debit to Cash and credit to AR, and the discount as an expense. The third entry records full payment as a debit to Cash and credit to AR.

Uploaded by

Anonn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Romela Company (Gross method)

Required:
1) Prepare journal entry to record the sale
Debit Credit
Accounts Receivable 4,500,000
Sales revenue 4,500,000

2) Prepare journal entry to record receipt of the payment assuming the correct amount was received on June 25,2020

Cash 4,410,000
Sales discount 90,000
Accounts receivable 4,410,000

3) Prepare journal entry to record receipt of the payment assuming the correct amount was received on July 10,2020

Cash 4,500,000
Accounts receivable 4,500,000
eceived on June 25,2020

eceived on July 10,2020

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