Penrith European Car Sales plc sells a new car with ‘free’ 5,000 kilometre and 20,000 kilometre...

Question

Penrith European Car Sales plc sells a new car with ‘free’ 5,000 kilometre and 20,000 kilometre services for a combined price of €41,500. The cost of the car from the manufacturer is €30,000. The two services normally cost €400 and €600 to do and are charged to casual customers at the rate of €800 and €1,200 respectively.

Required:

Record all the transactions associated with the sale.

Casumano · Accepted Answer

General Journal
				GENERAL JOURNAL			PAGE
							$1.00	$2.00
					DOC.	POST.	GENERAL
		DATE		ACCOUNT TITLE	NO.	REF.	DEBIT	CREDIT
	1			Bank A/c			€41,500.00							Bank
	2			Car Sales A/c				€39,500.00						Accounts Receivable
	3			Deferred revenue A/c				€2,000.

Penrith European Car Sales plc sells a new car with ‘free’ 5,000 kilometre and 20,000 kilometre services for a combined price of €41,500. The cost of the car from the manufacturer is €30,000. The two...

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