Answer:
Sales Returns $1000 Dr
Cash $2450 Dr
Discount Allowed $50 Dr
Accounts Receivables 3500 Cr
Explanation:
Out of the $3500 merchandise sold, $1000 is returned which will be recorded as Sales returns and as it is a contra account to Sales Revenue, it will be debited when increase. Against this return, Accounts receivables will be debited by the amount of return.
As the settlement is made within the discount period, the discount of 2% will be allowed on the outstanding amount after sales returns that is 3500 - 1000 = 2500
The discount will be 2500 * 2% = $50
The remaining will be received as Cash that is 2500 - 50 = $2450
Thus the acoounts receivables against this sale will be credited by this amount.
