Baker Company Sells Merchandise on Account for $5000 to Helix $\begin{array}{lrr} \text { Cash} &4,400\\ \text {Accounts Receivable } &&4,400\\\end{array}$

Short Answer

Baker Company sells merchandise on account for $5000 to Helix Company with credit terms of 1/10 n/30. Helix Company returns $600 of merchandise that was damaged along with a check to settle the account within the discount period. What entry does Baker Company make upon receipt of the check? a.
$\begin{array}{lrr} \text { Cash} &4,400\\ \text {Accounts Receivable } &&4,400\\\end{array}$

b.
$\begin{array}{lrr} \text { Cash} &4,356\\ \text { Sales Returns and Allowances } &644\\ \text { Accounts Receivable} &&5,000\end{array}$

c.
$\begin{array}{lrr} \text {Cash } &4,356\\ \text { Sales Returns and Allowances } &600\\ \text { Sales Discounts } &44\\ \text { Accounts Receivable}&&5,000\end{array}$

d.
$\begin{array}{lrr} \text { Cash} &4,950\\ \text { Sales Discounts } &50\\ \text {Sales Returns and Allowances } &&600\\ \text { Accounts Receivable}&&4,400\end{array}$