Response to the following :
Sales Discounts
Refer to the data in problem. Assume that all of the books were sold to a single customer and that the terms of the credit sale were 2/10, n/30. Make the journal entry necessary to record the receipt of the cash payment assuming that
(1) the customer paid the balance on the account five days after the purchase and
(2) the customer paid the balance on the account 20 days after the purchase.
Problem:
Revenue Recognition
Make the journal entry necessary to record the sale of 120 books at $32 per book. Sixty-five of the books were sold for cash, and 55 were sold on credit.