On June 14, 2018, Rumsfeld Company Sold 100 Air-Conditioning Units

question 109

Essay

On June 14, 2018, Rumsfeld Company sold 100 air-conditioning units to Powell Heating and Cooling. The units list for $600 each, but Powell was granted a 25% trade discount. All of Rumfeld's sales are subject to terms 2/10, n/30. Rumsfeld uses the gross 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 June 22, 2018.
3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on July 10, 2018.

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Definitions:

Situational Interview

A type of job interview that asks candidates to describe how they would handle or have handled specific workplace situations, to assess their suitability for a role.

Behavioural Description Interview

An interview technique where candidates are asked to describe past behavior in specific situations to predict future behavior in similar scenarios.

Supervisors

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Clinical Approach

A methodology generally used in healthcare settings that focuses on observing and treating patients in a systematic and practical manner.