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

Yes the entry is cash and accounts receivable. Usual the customer is charged FOB

Quote:

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Originally Posted by MF Controller

yes the entry is cash and accounts receivable. usual the customer is charged FOB

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Would you please see my this problem
Thank you a lot

https://www.askmehelpdesk.com/accoun...ml#post1373194

Debt Cash Credit AR

Quote:

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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

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