Question

Merchandise is sold on account on January 16, terms 2/10, n/30, and recorded by debiting Accounts Receivable and crediting Sales for $2,000. If payment occurs on January 21, the journal entry would include a credit to___________.

a. Sales Discounts for $40b. Accounts Receivable for $1,960c. Cash for $1,960d. Accounts Receivable for $2,000

Answer 1

Answer:

D. Accounts receivable for $2000

Explanation:

The payment is received between the discount period (10 days) so the 2% discount rate will be applicable, and the received amount would be net of discount.