Surplus Galore Uses the Gross Method of Accounting for Sales

question 81

Essay

Surplus Galore uses the gross method of accounting for sales discounts. Selected data from its records for the year ended December 31 was as follows:
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Assume that Austin Maxwell pays his $400 receivable on January 3, taking the 2 percent discount to which he is entitled. Journalize the entry to record the transaction.

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Definitions:

Sinful

Pertaining to actions or behaviors considered morally wrong or offending against religious or moral law.

Avoid Pain

A basic motivational drive to evade unpleasant and harmful stimuli or situations.

Ego-Ideal

Part of the psychoanalytic theory, representing an individual's personal standard of what is morally and ethically right or wrong.

Personality

The amalgamation of qualities that shapes a person's distinctive individuality.