Prepare the journal entry to record the receipt of payment

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The following transactions are for Kale Company. Journalize sales transactions.

1. On December 3 Kale Company sold $480,000 of merchandise to Thomson Co., terms 1/10, n/30. The cost of the merchandise sold was $320,000.

2. On December 8 Thomson Co. was granted an allowance of $28,000 for merchandise purchased on December 3.

3. On December 13 Kale Company received the balance due from Thomson Co.

Instructions

Problem (a) Prepare the journal entries to record these transactions on the books of Kale Com­pany. Kale uses a perpetual inventory System.

Problem (b) Assume that Kale Company received the balance due from Thomson 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.

Reference no: EM132998116

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