Accounting Problem, Please help!?

Question

How do you Journalize this transaction for Cash Receipt Journal.

" Received a check for $12000 from Pro Shop in payment of Invoice No. 120 for 13000, less the return of April 9 for $500, less discount."

Answer 1

The customer bought $13,000 worth of goods, but returned $500, so he owes you $12,500 and he paid you within the discount period. He gets $500 off. He needs to pay you only $12,000.

Entries in cash receipts journal:
Dr Cash 12,000
Dr Discount 500
Cr Accounts receivable 12,500