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    Journalizing with discounts

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    On January 1, 2002, Case Western Company had Accounts Receivable of $54,200 and
    Allowance for Doubtful Accounts of $4,700. Case Western Company prepares financial statements
    annually. During the year the following selected transactions occurred.Jan. 5 Sold $7,000 of merchandise to Garth Brooks Company, terms
    n/30.
    Feb. 2 Accepted a $7,000, 4-month, 12% promissory note from Garth Brooks
    Company for balance due.
    12 Sold $7,800 of merchandise to Gage Company and accepted Gage's $7,800,
    2-month, 10% note for the balance due.
    26 Sold $4,000 of merchandise to Mathias Co., terms n/10.
    Apr. 5 Accepted a $4,000, 3-month, 8% note from Mathias Co. for balance
    due.
    12 Collected Gage Company note in full.
    June 2 Collected Garth Brooks Company note in full.
    July 5 Mathias Co. dishonors its note of April 5. It is expected that Mathias will
    eventually pay the amount owed.
    15 Sold $5,000 of merchandise to Tritt Co. and accepted Tritt's $5,000, 3-
    month, 12% note for the amount due.
    Oct. 15 Tritt Co.'s note was dishonored. Tritt Co. is bankrupt, and there is no hope
    of future settlement.

    I get where to post things to but my problem is more of figuring out the discounts and then posting them to right account. I also understand the whole debit credit thing but the partial payments here and there and then posting it in full price and then only paying partially due to discounts is confusing me.

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    Solution Preview

    On January 1, 2002, Case Western Company had Accounts Receivable of $54,200 and
    Allowance for Doubtful Accounts of $4,700. Case Western Company prepares financial statements
    annually. During the year the following selected transactions occurred.Jan. 5 Sold $7,000 of merchandise ...

    Solution Summary

    This explains the Journalizing with discounts

    $2.19

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