Problem:
On October 18, 2013, Skeetz BBQ sold 2,000 pounds of brisket to Wohleners Grocery for $3,400, subject to terms 2/10, n30. Skeetz BBQ uses the gross method of accounting for sales discounts.
Required:
Question 1: Prepare the journal entry to record the sale.
Question 2: Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on October 26, 2013.
Question 3: Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on November 15, 2013.
Note: Show all workings.