Answer:
Explanation:
The journal entries are shown below:
1. On July 15
Accounts receivable A/c Dr $50,000 (1,000 tires × $50)
To Sales revenue A/c $50,000
(Being service provided is recorded)
On July 23
Cash A/c Dr $49,000
Sales Discount A/c Dr $1,000
To Accounts receivable $50,000
(Being cash received recorded)
The discount would be
= Accounts receivable × percentage given
= $50,000 × 2%
= $1,000
The remaining amount would be credited to the cash account.
2. On July 15
Accounts receivable A/c Dr $50,000 (1,000 tires × $50)
To Sales revenue A/c $50,000
(Being service provided is recorded)
On August 15
Cash A/c Dr $50,000
To Accounts receivable A/c $50,000
(Being cash collected is recorded)
