The net method of accounting


On May 12, 2013, Maxwell INC, sold five computers to Computing Plus for $10,000, subject to terms 3/10, n30. Maxwell uses the net method of accounting for sales discounts.

Required:

1. Prepare the journal entry to record the sale.

2. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on May 20, 2013.

3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on June 5, 2013.

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Accounting Basics: The net method of accounting
Reference No:- TGS0700313

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