Adding the Discount Terms 2/10, N/30 to a Sales Invoice

question 15

Multiple Choice

Adding the discount terms 2/10, n/30 to a sales invoice for $1 000 will -

• A) change the accounts receivable amount to $980
• B) change the cash in bank amount to $980
• C) credit $20 to accounts receivable and debit $980 when the account is paid
• D) not change the amounts in the journal entry for the sales invoice

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Definitions:

WAN

A Wide Area Network is a telecom network that spans a vast geographic area, mainly designed for connecting computers.

LAN

A Local Area Network is a computer network that interconnects computers within a limited area such as a residence, school, laboratory, or office building.

MAN

A Metropolitan Area Network; a network that spans a physical area larger than a LAN but smaller than a WAN, used to connect users in a geographic region.

WAN

Wide Area Network, a telecommunications network that extends over a large geographic area for the primary purpose of computer networking.