Question

nevada company provided services with a list price of $11,800 to small enterprises with terms 3/15, n/30. nevada records sales at gross. required: 1. prepare the entry to record this sale in nevada’s journal. if an amount box does not require an entry, leave it blank. accounts receivable sales revenue (record sale) feedback check my work 1. the gross method records the receivable at the “gross” (or undiscounted) price. the discount is then recognized if payment is made within the discount period. if payment is not received until after the discount period, the full amount is paid. 2. prepare the entry for nevada’s journal to record receipt of cash in payment for the sale within the discount period. if an amount box does not require an entry, leave it blank. cash sales discounts accounts receivable (record collection within discount period) feedback check my work 2. the gross method records the receivable at the “gross” (or undiscounted) price. the discount is then recognized if payment is made within the discount period. if payment is not received until after the discount period, the full amount is paid. 3. prepare the entry for nevada’s journal to record receipt of cash in payment for the sale after the discount period. if an amount box does not require an entry, leave it blank. cash accounts receivable

Explanation:

Step1: Record the initial sale

When recording the sale at gross, we debit Accounts Receivable for the full list price and credit Sales Revenue for the same amount.
Debit: Accounts Receivable $11,800$
Credit: Sales Revenue $11,800$

Step2: Record cash receipt within discount period

The terms are 3/15, n/30 which means a 3% discount if paid within 15 days. The discount amount is $11,800\times0.03 = 354$. The cash received is $11,800 - 354=11,446$.
Debit: Cash $11,446$
Debit: Sales Discounts $354$
Credit: Accounts Receivable $11,800$

Step3: Record cash receipt after discount period

When payment is received after the discount period, the full amount is paid.
Debit: Cash $11,800$
Credit: Accounts Receivable $11,800$

Answer:

1.
Debit: Accounts Receivable $11,800$
Credit: Sales Revenue $11,800$
2.
Debit: Cash $11,446$
Debit: Sales Discounts $354$
Credit: Accounts Receivable $11,800$
3.
Debit: Cash $11,800$
Credit: Accounts Receivable $11,800$