Question

Shirley bought goods from corrine. The goods had a list price of $800. Corrine allowed shirley trade discount of 20% and cash discount of 5%. In corrine book which entries record the cheque she recived from shirley

Answer 1

Answer:

journal Entries

1. Shirley a/c dr. 800

To Sales a/c. 640

To Trade Discount a/c. 160

2. Cash Discount a/c dr. 32

To Shirley a/c. 32

Explanation:

Corrine sold goods to Shirley at 20% Trade Discount and also give cash Discount of 5%.