Company sells $2,100 merchandise on account credit terms 2/10, n/30
the customer returns $600 of damaged merchandise along with a check to pay off account within discount period.

1) Prepare the journal entry to record the sale
2) Prepare the journal entry or entries to record the entries the company would make upon receipt of payment(check)

I'm not sure which to do first, this is what I have so far

Sale Discount
cash 2058.00
sale disc. (2100 x 0.02) 42.00
accounts recivable 2100.00




sales 2100
R&A (600)
net sales 1500.00

Company sells $2,100 merchandise on account credit terms 2/10, n/30
the customer returns $600 of damaged merchandise along with a check to pay off account within discount period.


When the company sell the item, the JE is:
Dr. AR 2,100
Cr. Sales 2,100

Now, the customer returns $600 of the goods and sends a check for the rest, and he qualifies for the discount. So let’s break this down.

The $600 return
Dr. Sales Returns and Allowances 600
Cr. AR 600

The Payment of the money he owes (2,100-600=1,500) He owes 1,500 and gets 2% discount, so the discount is 0.02 x 1,500 = 30

Dr. Cash 1,470 (1,500-30)
Dr. Sales Discount 30
Cr. AR 1,500