Introduction to Accounting
Dr Dina Kerema
Fall 2018
TA Salma Adam
Merchandise Company
Problem
N.B Merchandising Companies sells on credit only (A/R)
1. The company sold merchandising inventory for 5,000 on Nov. 3
Date
Account Type and Explanation
Dr
Cr
Nov 3
A/R
Sales Revenue
(Selling merchandise inventory)
5,000
5,000
Means that purchase discount will Means that the obligation
be 2% if payment is done within 10 days must be paid within 30 days
2. Discount
Ex: 2/10, n/30
