Page 77 - F3 -FA Integrated Workbook STUDENT 2018-19

Returns, discounts and sales tax

Example 3 cont.

Solution

Receivable Debit Credit
1 $9,500 Cash $9,500 Receivable $9,500 $10,000 × 95%

2 $5,700 Cash $6,000 Receivable $5,700 $6,000 × 95%
Revenue $300 $6,000 × 5%

3 $9,000 Cash $9,000 Receivable $9,000
4 $8,000 Cash $7,600 Receivable $7,600 $8,000 × 95%

Revenue $400 Receivable $400 $8,000 × 5%

Revenue recognition is considered in more detail in a later chapter of this Integrated
Workbook.

Illustrations and further practice

Now try TYU 2 and TYU 3 from Chapter 5 of the Study Text.

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