Asked by Allysa Restaino on May 22, 2024
Verified
Argyle Corp. uses the gross method or recording sales discounts. Assume that Fitzgerald, Inc. made a $12,000 purchase with terms of 2/10, n/30. When it pays in the discount period, what is the correct journal entry?
Gross Method
An accounting method for recording purchases at the invoice price without deducting any cash discounts offered.
Sales Discounts
A reduction in the price of goods or services offered to customers to encourage prompt payment.
Discount Period
The time frame in which a payment can be made with a discount for early payment, often used in terms of sales and accounts receivable to encourage prompt payment.
- Register buying and selling transaction details, using the gross approach for sales discount application.
Verified Answer
Learning Objectives
- Register buying and selling transaction details, using the gross approach for sales discount application.
Related questions
Surplus Galore Uses the Gross Method of Accounting for Sales ...
Record the Following Transactions for Oyster Corp ...
Why Does the Gross Method of Recording Sales Discounts Require ...
Record the Following Transactions Related to Purchases for Horston's Art ...
Surplus Galore Uses the Gross Method of Accounting for Sales ...