Maxie's Game World Sold Games to a Customer on Credit

question 109

Multiple Choice

Maxie's Game World sold games to a customer on credit for $2,600,terms 1/10,n/30 and the cost of the games was $1,700.When recording the collection from the customer made within the discount period,in its cash receipts journal,Maxie's would enter:

• A)$2,600 in the Cash Dr.column and $2,600 in the Accounts Receivable Cr.column.
• B)$2,574 in the Cash Dr.column and $2,574 in the Accounts Receivable Cr.column.
• C)$2,574 in the Cash Dr.column,$26 in the Sales Discount Dr.column and $2,600 in the Accounts Receivable Cr.column.
• D)$2,600 in the Accounts Receivable Dr./Sales Cr.column and $2,600 in the Cash Cr.column.
• E)$2,600 in the Cash Dr.column.$2,600 in the Sales Cr.column,and $1,700 in the Cost of Goods Sold Dr./Inventory Cr.column.

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Definitions:

Busy Reception

A scenario where the reception area of a business or office is experiencing high levels of activity and visitor volume.

Complaining

Expressing dissatisfaction or annoyance about a state of affairs or an event.

Healthcare

The organized provision of medical care to individuals or a community.

Unselfishly

Characterized by acting or giving without consideration for personal gain.