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oswego clay pipe company sold $46,000 of pipe to southeast water district 45 on april 12 of the current year with terms 115/ , n60/ . oswego uses the gross method of accounting for sales discounts. what entry would oswego make on april 12?
oswego clay pipe company sold $46,000 of pipe to southeast water district 45 on april 12 of the current year with terms 115/ , n60/ . oswego uses the gross method of accounting for sales discounts. what entry would oswego make on april 12?
Final answer:Using the gross method of accounting for sales discounts, Oswego Clay Pipe Company would record the full sale of$46,000to their Accounts Receivable and Sales, not factoring in the potential discount until it is actually taken.Explanation:Oswego Clay Pipe Company would record the sale on April 12 as a debit to Accounts Receivable for the full amount of $46,000 and a credit to Sales for the same amount, $46,000. This reflects the total potential amount receivable from the Southeast Water District 45. This sale is recorded at its full value because Oswego uses thegross methodof accounting for sales discounts, which means that it does not assume the discount will be taken until it actually is. The sales discount, in this case, is only recorded if the payment from Southeast Water District 45 is made within the discount period defined by the terms 1/15, n/60.Learn more about Gross Method Accounting here:brainly.com/question/31251705#SPJ4...