when a merchandiser sell
on account which journal entry is
needed to record the transaction
The lake theater opened on april 1.all facilities were completed on march 31. During april,the following events and transactions occured.
Apr.2 paid film rental of $800 on first movie.
3 ordered two additional films at $1,000 each.
10 made $2,000 payment on mortgage and $1,000 for accounts payable due.
11 lake theater contracted with r.wynns company to operate the concession stand. Wynns is to pay 17% of gross concession receipts (payable monthly) for the right to operate the concession stand.
20 received one of the films ordered on april 3 and was billed $1,000.the film will be shown in april.
30 received statement from r.wynns showing gross concession receipts of $1,000 and the balance due to the lake theater of $170($1,000 × 17%) for april. Wynns paid one-half of the balance due and will remit the remainder on may 5.
Journalize the april transaction.
2 answers
Account Receivable debited for that amount and Sale credited for the amount.