Presented below are transactions related to Bogner Company. 1. On December 3, Bogner Company sold $570,000 of merchandise on account to Maris Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $350,000.

Presented below are transactions related to Bogner Company.

1.        On December 3, Bogner Company sold $570,000 of merchandise on account to Maris Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $350,000.
2.        On December 8, Maris Co. was granted an allowance of $20,000 for merchandise purchased on December 3.
3.        On December 13, Bogner Company received the balance due from Maris Co.

Prepare the journal entries to record these transactions on the books of Bogner Company using a perpetual inventory system.





Explanation
Dec. 13        Cash     =     ($550,000 – $11,000)     =     $539,000
        Sales Discounts     =     [($570,000 – $20,000) x 2%]     =     $11,000
        Accounts Receivable     =     ($570,000 – $20,000)     =     $550,000

Assume that Bogner Company received the balance due from Maris Co., on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2.

Explanation
Accounts Receivable     =     ($570,000 – $20,000)     =     $550,000