Answer:
Explanation:
a. On March 2
Debiting Accounts Receivable A/c $$887,400
Crediting Sales A/c $$887,400
(Recognizing the sale of inventory at sale price)
Debiting Cost of Goods Sold A/c $
Crediting Merchandise Inventory A/c $571,700
(Recognizing merchandise sold at cost)
b. On March 8
Debiting Sales Return and Allowance A/c $103,200
Crediting Accounts Receivable $103,200
(Recording the sales return)
Debiting Merchandise Inventory A/c $62,500
Crediting Cost of Goods Sold A/c $62,500
(Recording the sales return)
c. On March 12
Debiting Cash A/c $768,516
Debiting Sales Discounts A/c $15,684
Crediting Accounts Receivable A/c $784,200
(Recording cash received)
Calculating the balance owed is as follows:
= Sale of inventory - Returns
= $887,400 - $103,200
= $784,200
And the discount = $784,200 × 2% = 15,684
