On 1 April,Pro Supplies Received a Cheque from Carter Services

Multiple Choice

On 1 April,Pro Supplies received a cheque from Carter Services for payment of an invoice dated 24 March for $1 800 with credit terms of 2/10 n/30.Assuming the payment includes 10% GST,how would this transaction be recorded in Pro's cash receipts journal?

A) debit Cash $1 800,credit Accounts receivable-Carter Services $1 800
B) debit Cash $1 764,debit Sales discount $36,credit Accounts receivable-Carter Services $1 800
C) debit Cash $1 764,debit Sales discount $33,debit GST clearing account $3,credit Accounts receivable-Carter Services $1 800
D) debit Cash $1 800,credit Sales discount $33,credit GST clearing account $3,credit Accounts receivable-Carter Services $1 764