Reference no: EM132429326
Question - The following information pertains to Windsor Solar Panels, Inc.
July 1: Sold $132,000 of solar panels to Wildhorse Company with terms 2/15, n/30. Windsor uses the gross method to record cash discounts. Windsor estimates allowances of $1,500 will be honored on this sale.
July 12: Sold $93,000 of solar panels to Swifty Corp. with terms of 3/10, n/60. Windsor expects no allowances related to this sale.
July 18: Swifty Corp. paid Windsor for its July 12 purchase.
July 20: Wildhorse calls to indicate that the panels purchased on July 1 work well, but the color is not quite right. Windsor grants a credit of $2,300 as compensation.
July 29: Wildhorse Company paid Windsor for its July 1 purchase.
July 31: Windsor expects allowances of $4,140 to be grated in the future related to solar panel sales in July.
Prepare the necessary journal entries for Windsor.