128 on july 10 2016 rex company sold merchandise at an invoice price of 5 000 with t 4314194

128.On July 10, 2016, Rex Company sold merchandise at an invoice price of $5,000 with terms of 2/10, n/30.

Required:

Prepare the journal entries required below by indicating the account code of the appropriate account for each debit and credit and enter the dollar amounts for each item.

Account Code

ACash

BAccounts receivable

CSales revenue

DSales discounts

TransactionDebitsCredits

CodeAmountCodeAmount

Sale on July 10, 2016   

Assumption A: Collection of the account on August 9, 2016.   

Assumption B: Collection of the account on July 18, 2016.   

129.On June 1, 2016, Concorde Company sold merchandise on credit at an invoice price of $1,000; terms 2/10, n/30.

Required:

Prepare the journal entries to record the following:

A. To record the sale.
B. Assumption A: To record collection on June 28, 2016.
C. Assumption B: To record collection on June 9, 2016.  
 

130.Determine the effect of the following transactions on the financial statement components identified. Code your answers as follows:

A: If the transaction results in an increase in the financial statement component.
B: If the transaction results in a decrease in the financial statement component.
C. If the transaction does not affect the financial statement component.

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