On december 1, macy company sold merchandise with a selling price of $ 5,000 on account to mrs. jorgensen, with terms 4/10, n/30. on december 3, mrs. jorgensen returned merchandise with a selling price of $ 900. mrs. jorgensen paid the amount due on december 9. what journal entry did macy company prepare on december 9 assuming the gross method is used?

Explanation:

The journal entry is shown below:

Cash A/c Dr 3,936

     To Accounts receivable A/c 3,936

(Being payment is received within the discount period)

The amount of cash received is shown below:

= Sales - returned goods - discount

= $5,000 - $900 - 4%

= 3,936

Since the cash is received so we debited the cash and credited the account receivable account

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order: