Problem 4-4

1 Accounts receivables 4,000,000

Sales 4,000,000
To record the on account sale

2 cash 1,470,000
Sales discount 30,000
Accounts receivables 1,500,000
To record the collection within the discount period

3 Cash 1,000,000
Accounts receivables 1,000,000
To record the collection beyond the discount period

4 Sales return 100,000

Accounts receivables 100,000
To resord sales return

5 Sales return 20,000

Allowance for sales return 20,000
To record estimated sales return