Question

Kristi's Pottery sold 200 tiles at $25.00 each to a charge customer, terms 1/10, n/30. Which entry is required to record this transaction?

A ) Debit Accounts Receivable $4,050; debit Sales Discount $50.00; credit Tile Sales $5,000

B ) Debit Cash $5,000; credit Tile Sales $5,000

C ) Debit Accounts Receivable $4,050; credit Tile Sales $4,050

D ) Debit Accounts Receivable $5,000; credit Tile Sales $5,000

Answer 1

The answer to your questions is letter D. Debit Accounts Receivable $5,000; Credit Tile Sales $5,000.

Answer 2

The entry required to record this transaction is D ) Debit Accounts Receivable $5,000; credit Tile Sales $5,000

Data and Calculations:

Tiles sold = 200 units

Selling price = $25.00 per unit

Total sales revenue for this transaction = $5,000 ($25 x 200)

Credit terms = 1/10, n/30

These credit terms mean that:

1. the customer will be granted 1% cash discount if she pays within 10 days.
2. the total credit days (limit) allowed to the customer for this transaction is 30 days.

Thus, Accounts Receivable account is debited with $5,000 and the Tile Sales Revenue account is credited with $5,000.

Learn more about recording credit sales transactions in the journal here: https://brainly.com/question/24159112