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    Fundamental Accounting Principles Study Set 4
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    Exam 5: Accounting for Merchandising Operations
  5. Question
    A Journal Entry with a Debit to Cash of $980
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A Journal Entry with a Debit to Cash of $980

Question 111

Question 111

True/False

A journal entry with a debit to cash of $980, a debit to Sales Discounts of $20, and a credit to Accounts Receivable of $1,000 means that a customer has taken a 10% cash discount for early payment.
$20/$1,000 = 2% discount

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