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A Company Sold Inventory for $24,000 on Credit with Terms

Question 70

Multiple Choice

A company sold inventory for $24,000 on credit with terms of 3/15,n/30.The company uses a perpetual inventory system.After two days,it received defective inventory worth $2000.The journal entry to record the cash receipt for sale if the payment is received within 10 days of the invoice date would include:


A) a debit to Cash for $21,340,a debit to Sales discount for $660 and a credit to Accounts receivable for $22,000.
B) A debit to Sales for $24,000,a credit to Accounts receivable for $24,000 and a credit to Sales discount for $2000
C) a debit to Cash for $22,000,a debit to Inventory for $2000 and a credit to Accounts receivable.
D) a debit to Cash for $21,340,a credit to Inventory for $660 and a credit to Sales revenue for $22,000.

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