Anonymous
Anonymous asked in Business & FinanceOther - Business & Finance · 1 decade ago

T Accounts in accounting?

When using T-Accounts in accounting. How do you set them up for these following transactions:

Jan 6. Sold goods for $1,000 to S. Green and billed that amount subject to terms 2/10, n/30.

Jan 6. Sold good to M. Munoz for $900 and billed that amount subject to terms 2/10, n/30.

Jan 14. Collected cash due from S. Green

Feb 2. Collected cash due from M.Munoz

Feb 28. Sold goods for 500 to R. Reynolds and billed that amount subject to terms 2/10, n/30.

What T-Accounts do I use and what do I debt and credit?

1 Answer

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  • Sandy
    Lv 7
    1 decade ago
    Favorite Answer

    Jan 6. Sold goods for $1,000 to S. Green and billed that amount subject to terms 2/10, n/30

    Dr Accounts receivable $1,000

    Cr Sales $1,000

    Jan 6. Sold good to M. Munoz for $900 and billed that amount subject to terms 2/10, n/30

    Dr Accounts receivable $900

    Cr Sales $900

    Jan 14. Collected cash due from S. Green

    Dr Cash $980

    Dr Sales discounts $20

    Cr Accounts receivable $1,000

    Feb 2. Collected cash due from M.Munoz

    Dr Cash $900

    Cr Accounts receivable $900

    Feb 28. Sold goods for 500 to R. Reynolds and billed that amount subject to terms 2/10, n/30

    Dr Accounts receivable $500

    Cr Sales $500

    The T-accounts you need to use are Accounts receivable, Sales, Cash, and Sales discounts. You debit (left side) what I wrote as Dr and you credit (right side) what I wrote as Cr above.

    The links below should help you.

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