Record the following transactions on the books of Sheffield Corp. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a)On July 1, Sheffield Corp. sold merchandise on account to Waegelein Inc. for $18,300, terms 2/10, n/30. (b)On July 8, Waegelein Inc. returned merchandise worth $4,800 to Sheffield Corp.. (c)On July 11, Waegelein Inc. paid for the merchandise.

On the date of sale:

Dr Account receivables       $18,300

Cr Sales                                                 $18,300

On the 8th July:

Dr sales return                      $4,800

Cr Accounts receivable                    $4,800

On July 11:

Dr Cash                                    $13,230

Dr Sales discount                     $270

Cr Accounts receivables                       $13,500

Explanation:

The goods sold to Waegelein Inc would be recorded as sales as well as receivables since cash has not been received.

Upon return of goods worth $4800 the receivables account would be credited with $4,800  to indicate that the indebtedness of Waegelein has reduced by the amount of sales return .

Finally, the payment receipt is within the ten days discount period , hence the amount received is calculated as follows:

Sales                             $18,300

sales returns                ($4,800)

Balance                         $13500

less discount

$13500*2%                     ($270)

Cash receipt                  $13,230

Sheffield Corp

A. Jul. 1

Dr Accounts Receivable - Maxfield Inc. 18,300

Cr Sales (To record sales on account ) 18,300

B. July 8

Dr Sales Returns and Allowances 4,800

Cr Accounts Receivable - Maxfield Inc. 3,800 (To record merchandise returned)

C. July 11

Dr Cash ($13,500 - $270) 13,230 Dr Sales Discounts ($13,500x .020) 270

Cr Accounts Receivable - Maxfield Inc. 13,500 (To record collection of accounts receivable)

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.