Question: Gross & Net methods of recording sales
Information from Sunland Company follows:
July 1 Sold $81,100 of computers to Marigold Corp., terms 2/15, n/30.
July 5 Marigold Corp. returned for full credit one computer with an invoice price of$6,100.
July 10 Sunland received payment from Marigold for the full amount owed from the July transactions.
July 17 Sold $162,600 in computers and peripherals to Nawaz Store, terms 2/10, n/30.
July 26 Nawaz Store paid Sunland for half of its July purchases.
Aug. 30 Nawaz Store paid Sunland for the remaining half of its July purchases
Required:
a) Prepare the entries for Sunland Company, assuming the gross method is used to record sales and cash discounts.
b) Prepare the entries for Sunland Company, assuming the net method is used to record sales and cash discounts.