On April 1, Moloney Meat Distributors sold merchandise on account to Fronke’s Franks for $2,300 on Invoice 1001, terms 2/10, n/30. Payment was received in full from Fronke’s Franks, less discount, on April 10. Required: Record the transactions on April 1 and April 10.

In Moloney Meat Distributors:

On April 1, entry records the sales:

Debit Accounts Receivable $2,300

Credit Revenue $2,300

On April 10, the entry:

Debit Cash $2,254

Debit Sales Discount $46

Credit Accounts Receivable $2,300

In Fronke’s Franks:

On April 1, the entry was made:

Debit Merchandise $2,300

Credit Accounts Payable $2,300

On April 10:

Debit Accounts Payable $2,300

Credit Cash $2,254

Credit Purchases Discount $46

Explanation:

The terms of 2/10, n/30 means 2% discount for the payment within 10 days and the full amount to be paid within 30 days.

In Moloney Meat Distributors:

On April 1, the company sold merchandise on account, entry records the sales:

Debit Accounts Receivable $2,300

Credit Revenue $2,300

On April 10, when received the payment from customer, Moloney Meat Distributors records 2% discount by the entry:

Debit Cash $2,254

Debit Sales Discount $46

Credit Accounts Receivable $2,300

In Fronke’s Franks:

On April 1, the entry was made:

Debit Merchandise $2,300

Credit Accounts Payable $2,300

On April 10:

Debit Accounts Payable $2,300

Credit Cash $2,254

Credit Purchases Discount $46

answercontrol is returned to method c;