EXERCISE 18-2 (15-20 minutes)
(a) 1. 6/3 Accounts Receivable—Kim Rhode............. 5,000
Sales.......................................................... 5,000
6/5 Sales Returns and Allowances................. 400
Accounts Receivable—Kim Rhode.. 400
6/7 Transportation-Out....................................... 24
Cash........................................................ 24
6/12 Cash................................................................ 4,508
Sales Discounts (2% X $4,600).................. 92
Accounts Receivable—Kim Rhode.. 4,600
2. 6/3 Accounts Receivable—Kim Rhode.......... 4,900
Sales [$5,000 – (2% X 5,000)]............. 4,900
6/5 Sales Returns and Allowances................. 392
Accounts Receivable—Kim Rhode.. 392
[$400 – (2% x $400)]
6/7 Transportation-Out....................................... 24
Cash........................................................ 24
6/12 Cash................................................................ 4,508
Accounts Receivable—Kim Rhode.......... 4,508
(b) 8/5 Cash................................................................ 4,600
Accounts Receivable—Kim Rhode.. 4,508
Sales Discounts Forfeited.................. 92
(2% X $4,600)
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