PE 6-2A Sales transactions

Journalize the following merchandise transactions:
a. Sold merchandise on account, $29,000 with terms 2/10, n/30. The cost of the merchandise
sold was $21,750.
b. Received payment less the discount.

Answer:
a. Accounts Receivable ................................................... 29,000
                  Sales ........................................................................ 29,000
    Cost of Merchandise Sold........................................... 21,750
                   Merchandise Inventory........................................... 21,750

b. Cash .......................................................................... 28,420
     Sales Discounts ...........................................................       580
                    Accounts Receivable..............................................          29,000