Macaroon Corp

Multiple Choice

Macaroon Corp.has sold goods at terms 1/10, n/30.If the discount is not taken, the amount payable is $8,524.Assuming Macaroon uses the net method, the entry to record the sale is

A) a debit and credit of $7,671.60 to both Accounts Receivable and Sales respectively.
B) a debit and credit of $8,438.76 to Accounts Receivable and Sales respectively.
C) a debit and credit of $8,524 to Accounts Receivable and Sales respectively.
D) debits of $8,438.76 and $85.24 to Accounts Receivable and "Forfeited Sales Discounts"
Respectively, and a credit to Sales for the total.