Answer:
On the date of sale:
Dr Account receivables $18,300
Cr Sales $18,300
On the 8th July:
Dr sales return $4,800
Cr Accounts receivable $4,800
On July 11:
Dr Cash $13,230
Dr Sales discount $270
Cr Accounts receivables $13,500
Explanation:
The goods sold to Waegelein Inc would be recorded as sales as well as receivables since cash has not been received.
Upon return of goods worth $4800 the receivables account would be credited with $4,800 to indicate that the indebtedness of Waegelein has reduced by the amount of sales return .
Finally, the payment receipt is within the ten days discount period , hence the amount received is calculated as follows:
Sales $18,300
sales returns ($4,800)
Balance $13500
less discount
$13500*2% ($270)
Cash receipt $13,230
Sheffield Corp
A. Jul. 1
Dr Accounts Receivable - Maxfield Inc. 18,300
Cr Sales (To record sales on account ) 18,300
B. July 8
Dr Sales Returns and Allowances 4,800
Cr Accounts Receivable - Maxfield Inc. 3,800 (To record merchandise returned)
C. July 11
Dr Cash ($13,500 - $270) 13,230 Dr Sales Discounts ($13,500x .020) 270
Cr Accounts Receivable - Maxfield Inc. 13,500 (To record collection of accounts receivable)
