Sampson co. sold merchandise to batson co. on account, $36,900, terms 2/15, net 45. the cost of the merchandise sold is $27,675. batson co. paid the invoice within the discount period. assume both sampson and batson use a perpetual inventory system. prepare the entries that sampson co. would record for the information above.

Explanation:

The journal entries are shown below:

Accounts receivable A/c Dr $36,900

        To Sales A/c $36,900

(Being merchandise is sold on credit basis)

Cost of goods sold A/c Dr $27,675

                 To Merchandise inventory A/c $27,675

(Being merchandise is sold at cost is recorded)

Cash A/c Dr                   $36,162

Sales Discount A/c Dr $738

     To  Accounts receivable    $36,900

(Being cash received recorded)

The computation of the discount would be

= Accounts receivable × percentage given

= $36,900 × 2%

= $738

The remaining amount would be credited to the cash account.

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