A Credit Sale of $2,500, Terms 1/20, N/30, Should Be

Multiple Choice

A credit sale of $2,500, terms 1/20, n/30, should be recorded with which of the following journal entries? $\begin{array}{|l|l|r|r|}\hline& &\mathrm{DR} & \mathrm{CR} \\\hline \text { A } & \text { Trade receivables } & 2,475 & \\& \text { Sales revenue } && 2,475\\\hline \text { B } & \text { Allowance for discounts } & 25 & \\& \text { Accounts receivable } & 2,475 & \\& \text { Sales revenues } && 2,500 \\\hline \mathrm{C} & \text { Trade receivables } & 2,500& \\& \text { Sales revenue } & & 2,500\\\hline \mathrm{D} & \text { Trade receivables } & 2,500& \\& \text { Sales revenue } & &2,475 \\& \text { Sales discount } & & 25\\\hline\end{array}$

A) Choice A
B) Choice B
C) Choice C
D) Choice D