The following information pertains to Windsor Solar Panels, Inc.
July 1 Sold $128,000 of solar panels to Wildhorse Company with terms 3/15, n/30. Windsor uses the gross method to record cash discounts. Windsor estimates allowances of $1,500 will be honored on this sale.
12 Sold $82,000 of solar panels to Novak Corp. with terms of 4/10, n/60. Windsor expects no allowances related to this sale.
18 Novak Corp. paid Windsor for its July 12 purchase.
20 Wildhorse calls to indicate that the panels purchased on July 1 work well, but the color is not quite right. Windsor grants a credit of $2,100 as compensation.
29 Wildhorse Company paid Windsor for its July 1 purchase.
31 Windsor expects allowances of $5,340 to be grated in the future related to solar panel sales in July.
Prepare the necessary journal entries for Larkspur. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
Date Account Titles and Explanation Credit Debit
July 18

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

July 1 Sold $128,000 of solar panels

Dr Receivables 128,000

Cr Sales 128,000

12 Sold $82,000 of solar panels

Dr Receivables 82,000

Cr Sales 82,000

18 Novak Corp. paid Windsor for its July 12 purchase.

Dr Cash 78,720

Dr Discount allowed 3280

Cr Receivables 82,000

Windsor grants a credit of $2,100 as compensation.

Dr compensation expense 2,100

Cr cash 2,100

29 Wildhorse Company paid Windsor for its July 1 purchase.

Dr Cash 128,000

Cr Receivables 128,000

31 Windsor expects allowances of $5,340 to be grated in the future

Dr Bad debt expense 5,340

Cr Allowance for bad debt 5,340