Goods costing $2,000 are purchased on account on July 15 with
credit terms of 2/10, n/30. On July 18, a $200 credit memo is received
from the supplier for damaged goods. Give the journal entry on July 24
to record payment of the balance due within the discount period using
a perpetual inventory system.
Celina Harris believes revenues from credit sales may be recorded
before they are collected in cash. Do you agree? Explain.
(a) What is the primary source document for recording
sales and (2) credit sales? (b) Using XXs for amounts, give the journal
entry for each of the transactions in part (a).