A Company Sold Merchandise for $24,000 on Account with Terms

Multiple Choice

A company sold merchandise for $24,000 on account with terms of 5/15,n/30.The company uses a perpetual inventory system.After two days,it received defective merchandise worth $4,000.The journal entry to record the cash receipt for the sale if the payment is received within 10 days of the invoice date would include ________.

A) a debit to Cash for $20,000,a credit to Merchandise Inventory for $1,000,and a credit to Sales Revenue for $19,000
B) a debit to Cash for $19,000,a debit to Sales Discount for $1,000,and a credit to Accounts Receivable for $20,000
C) a debit to Cash for $20,000,a debit to Merchandise Inventory for $4,000,and a credit to Accounts Receivable for $24,000
D) a debit to Sales Revenue for $24,000,a credit to Accounts Receivable for $20,000,and a credit to Sales Discounts for $4,000