Montoya Co by lanyuehua

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									       Montoya Co. uses the gross method to record sales made on credit.
                              Accounts Receivable
      date                       description                debit       credit
     June 1, 2008 Accounts Receivable                        40,000
                  Sales                                                  40,000
                                  3/15, n/45
June 12,2008      cash                                       38,800
                  sales discounts (40,000*.03)                1,200
                  Accounts Receivable                                    40,000
     June 2, 2008 Accounts Receivable                        38,800
                  sales                                                  38,800
June 12,2008      cash                                       38,800
                  Accounts Receivable                                    38,800
        12-Jul-08 cash                                       40,000
                  Accounts Receivable                                    38,800
                  sales discounts (40,000*.03)                            1,200

July 1,2008       Accounts Receivable                        20,000
                  Sales                                                 20,000
                                  3/15, n/60
July 10,2008      Cash                                        19400
                  sales discount (20000*.03)                    600
                  Accounts Receivable                                   20,000
July 17,2008      Accounts Receivable                       200,000
                  Sales                                                200,000
                                  2/10, n/30
July 30,2008      Cash                                      200,000
                  Accounts Receivable                                  200,000

                  Net Method
July 1,2008       Accounts Receivable                         19400
                  Sales                                                  19400
July 10,2008      Cash                                        19400
                  Accounts Receivable                                    19400
July 17,2008      Accounts Receivable                        196000
                  Sales                                                 196000
                  (sales discounts (200000*.98)
July 30,2008      Cash                                       200000
                  Accounts Receivable                                   196000
                  sales discounts                                         4000

								
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