Answer:
In Moloney Meat Distributors:
On April 1, entry records the sales:
Debit Accounts Receivable $2,300
Credit Revenue $2,300
On April 10, the entry:
Debit Cash $2,254
Debit Sales Discount $46
Credit Accounts Receivable $2,300
In Fronke’s Franks:
On April 1, the entry was made:
Debit Merchandise $2,300
Credit Accounts Payable $2,300
On April 10:
Debit Accounts Payable $2,300
Credit Cash $2,254
Credit Purchases Discount $46
Explanation:
The terms of 2/10, n/30 means 2% discount for the payment within 10 days and the full amount to be paid within 30 days.
In Moloney Meat Distributors:
On April 1, the company sold merchandise on account, entry records the sales:
Debit Accounts Receivable $2,300
Credit Revenue $2,300
On April 10, when received the payment from customer, Moloney Meat Distributors records 2% discount by the entry:
Debit Cash $2,254
Debit Sales Discount $46
Credit Accounts Receivable $2,300
In Fronke’s Franks:
On April 1, the entry was made:
Debit Merchandise $2,300
Credit Accounts Payable $2,300
On April 10:
Debit Accounts Payable $2,300
Credit Cash $2,254
Credit Purchases Discount $46
