Originally Posted by
cowsill
Mar/8 Schafer Merchandising's merchandise that cost $540 was sold to Wilson Sales for $600 under credit terms of 2/30, n/60, FOB shipping point. So I tried to work this out:
Dr: A/R 600
Cr: Sales 600
Dr: Cost of Goods Sold 540
Cr: Inventory 540
This part I get but....
on Mar 31 Received Wilson's sales payment of the amout due from the March 8 sale.
Do I credit cash and Accounts receivable and anything else?
One more question please if Fob shipping point do they not charge the customer? Thanks for your help