Netherland Corporation Has the Following Unadjusted Balances: Accounts Receivable,$80,000 (Debit),and $\begin{array}{|l|r|r|}\hline \text { Accounts Receivable } & 80,000 & \\\hline \text { Sales } & & 80,000 \\\hline\end{array}$

Multiple Choice

Netherland Corporation has the following unadjusted balances: Accounts Receivable,$80,000 (debit) ,and Allowance for Sales Discounts $300 (credit) .Of the receivables,$50,000 of them are within the 2% discount period,and Netherland expects buyers to take $1,000 in future-period discounts ($50,000 × 2%) arising from this period's sales.The adjusting entry to estimate sales discounts is (are) :

A) $\begin{array}{|l|r|r|}\hline \text { Accounts Receivable } & 80,000 & \\\hline \text { Sales } & & 80,000 \\\hline\end{array}$
B) $\begin{array}{|l|r|r|}\hline \text { Sales Discounts } & 50,000 & \\\hline \text { Sales } & & 50,000 \\\hline \text { Cost of Goods Sold } & 1,000 & \\\hline \text { Inventory Returns Estimated } & & 1,000 \\\hline\end{array}$
C) $\begin{array}{|l|r|r|}\hline \text { Sales Discounts } & 700 & \\\hline \text { Allowance for Sales Discounts } & & 700 \\\hline\end{array}$
D) $\begin{array}{|l|r|r|}\hline \text { Sales Discounts } & 1,000 & \\\hline \text { Accounts receivable } & & 1,000 \\\hline\end{array}$
E) $\begin{array}{|l|r|r|}\hline \text { Sales Discounts } & 1,000 & \\\hline \text { Allowance for Sales Discounts } & & 1,000 \\\hline\end{array}$