Answer:
Dr Accounts receivable $20,000
Cr Sales $20,000
Dr cash $19,400
Dr sales discount $600
Cr accounts receivable $20,000
Dr Accounts receivable $200,000
Cr sales $200,000
Dr cash $196,000
Dr sales discount $4,000
Cr accounts receivable $200,000
Explanation:
Perez uses gross method of recording discount. Which means, there is no sales discount recognition unless the customer availed it. During the sales for the month of July, Perez’ customers availed the discount and paid on the date within which specific discount is given. Upon payment of the customers, Perez’ should recognize the sales discount in the amount of $600 for Robertson and $4,000 for Clark Store.
