Metlock Company sells goods to Danone Inc. by accepting a note receivable on January 2,...
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Metlock Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2017. The goods have a sales price of $649,600 (cost of $550,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $9,600. Past history indicates that the cash discount will be taken. On January 28, 2017, Danone makes payment to Metlock for the full sales price.
Date
Account Titles and Explanation
Debit
Credit
a
b
c
Prepare the journal entry(ies) to record the sale and related cost of goods sold for Metlock Company on January 2, 2017, and the payment on January 28, 2017. Assume that Metlock Company records the January 2, 2017, transaction using the gross method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Date
Account TItles and Explanation
Debit
Credit
a
b
c
Answer & Explanation
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