Solved

Inventory Was Sold on Credit for $3,000,terms 1/10,n/30

Question 29

Multiple Choice

Inventory was sold on credit for $3,000,terms 1/10,n/30.How should the seller record the cash collection?


A) Debit Cash for $3,000 and credit Accounts Receivable for $3,000, if collected within the discount period.
B) Debit Cash for $3,000, credit Accounts Receivable for $2,970, and credit Sales Discounts for$30, if collected within the discount period.
C) Debit Cash for $3,000, credit Accounts Receivable for $2,970, and credit Sales Discounts for$30, if collected after the discount period.
D) Debit Cash for $3,000 and credit Accounts Receivable for $3,000, if collected after the discount period.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions