Presented below is information from Sandhill Computers Incorporated. July 1 Sold $20,000 of computers to Robertson Company with terms 3/15, n/60. Sandhill uses the gross method to record cash discounts. Sandhill estimates allowances of $1,300 will be honored on these sales. 10 Sandhill received payment from Robertson for the full amount owed from the July transactions. 17 Sold $200,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Sandhill for its purchase of July 17.

Answer and Explanation:

The journal entries are shown below:

On July 1

Accounts receivable Dr $20,000  

            To Sales revenue  $20,000

(To record the sales on account)

On July 10

Cash $19,400    

Sales discount $600 ($20,000 × 3%)  

        To Accounts receivable  $20,000

(To record the payment received)

On July 17

Accounts receivable $200,000  

             To Sales revenue  200,000

(To record the sales on account)

On July 30

Cash $200,000  

       To Accounts receivable  $200,000

(To record the payment received)

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%