Is anybody here good with accounting? I'm stuck on a particular process that is critical to me completing this homework assignment that is worth 200 points. This particular process I only have to understand because it is used over and over again.
What's going on is we have these forms that are already filled out for us. Some are checks our company has made out, and some are checks that are written out to us. The ones that are written out to us is what I'm having trouble with.
A check has been written out to us for $8,232 and I'm going to file that in the CASH DR column of the Cash Receipts Journal. Then, on the check in the "For" section there is the following: 8/28 Inv. Less 2%.
The number that I gain from this informaiton will go into the Sales Discounts DR column of the Cash Receipts Journal. I will then subract this number from the Cash DR number to put the total in the Accounts Receivable CR column of the Cash Receipts Journal. They write me a check - I file it. They opt for the discount - I file it. The left over figure that gets put into our pockets at the end of the process - I file it.
Previous checks that had the same discount amount(the discount amount will always be the same - 8/28 Inv. Less 2%), but only different amounts in the check amount field, looked like the following in the Cash Receipts Journal.
Sales Discounts DR.
Accounts Receivable CR.
Now, the first number, lets take 6370 by 2%. We get: 127.4 - that's CLOSE to the listed entry in the Sales Discount field - 130, but not pin-point accurate. I don't know how I am to find an accurate process from the given numbers. I have previous examples(see above) which are 100% accurate, but I don't know what I am supposed to do with the information found in the "For" field on the checks. I can't extrapolate what to do with this information. If I could figure out what's going on in these previous examples, which are right, then I could go on to do the unfinished ones from the beginning.
I could use some help.
If any of you feel confident in Accounting and could be a real pal, I could get on a messenger and send you some high-quality scans of the previously completed, and correct examples so you may help me deduce what it is that I am supposed to do.