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Netherland Corporation has the following unadjusted balances: Accounts Receivable, $80,000 (debit), and Allowance for Sales Discounts $300 (credit). Of the receivables, $50,000 of them are within the 2% discount period, and Netherland expects buyers to take $1,000 in future-period discounts ($50,000 × 2%) arising from this period’s sales. The adjusting entry or entries to estimate sales discounts is (are):

Sagot :

Answer:

Explanation:

BBC

Answer:

DR: Sales Discount 740

CR: Allowance for Sales Discount 740

Explanation:

Allowance for Sales Discounts = $54,000 × 0.02 = $1,080 − $340 = $740

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