Answer:
Sales on June 30:
Dr accounts receivable $400,000
Cr sales revenue $400,000
On August 15:
Dr cash $400,000
Cr accounts receivable $400,000
Explanation:
On June 30 when Lindley Enterprises sold 500 rugs worth $400,000 to Paige Corporation ,Lindley would have to recognize sales of $400,000 since the rugs have been transferred to Paige Corporation by crediting sales revenue and debiting accounts receivable with $400,000.
On August 15,Lindley would have received cash of $400,000 in respect of their earlier sales,hence accounts receivable should be credited while cash account is debited
