Galaxy Star Corporation purchased goods for $100,000 from Sunrise
Materials. Galaxy Star Corporation can avail a discount of 2.5% if the
payment is made within 20 days. However, the full payment will be made
if the payment is made after 20 days.
If Galaxy Star Corporation pays within 20 days, which of the
following entries will it pass?

Question

26-06-2022
Mathematics

contestada

Galaxy Star Corporation purchased goods for $100,000 from Sunrise
Materials. Galaxy Star Corporation can avail a discount of 2.5% if the
payment is made within 20 days. However, the full payment will be made
if the payment is made after 20 days.
If Galaxy Star Corporation pays within 20 days, which of the
following entries will it pass?

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topeadeniran2 topeadeniran2 · Answer 1 · 2022-07-04T21:18:58+02:00

The entry that it will pass on the accounting book based on the information about Galaxy Star Corporation is the credit sales.

What is a credit sale?

It should be noted that credit sales are the sales where the amount that is owed will be paid at alter date.

From the information given, we were informed that the payment will be made after 20 days. Therefore, the appropriate entry will be in town credit sales.

Learn more about credit sales on:

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