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On May 12, 2018, Falwell Computing Sold Five Computers to Computing

question 117

Essay

On May 12, 2018, Falwell Computing sold five computers to Computing Plus for $10,000, subject to terms 3/10, n/30. Falwell uses the net method of accounting for sales discounts.
Required:
1. Prepare the journal entry to record the sale.
2. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on May 20, 2018.
3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on June 5, 2018.


Definitions:

Free Markets

Economic systems in which prices for goods and services are determined by the open market and consumers, with minimal government intervention.

Economic Competition

A condition in markets where businesses or sellers independently strive for the consumers' patronage to achieve a particular business objective, such as profits or market share.

Deregulation

The process of removing or reducing state regulations, typically in the economic sphere, to encourage free-market competition.

Republican Party

A major political party in the United States, also known as the GOP (Grand Old Party), which traditionally supports conservative policies, including smaller government, lower taxes, and strong national defense.

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