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

---

Definitions:

Cost Per Equivalent Unit

A calculation used in process costing that determines the cost assigned to individual units of production, considering units that are partially completed.

Processing Department

A unit within a manufacturing facility where a specific type of production activity or process is carried out, such as assembly or painting.

Total Cost Transferred

The aggregated cost that is moved from one department or process to another within a company.

Cost Reconciliation Report

A financial document that adjusts and aligns cost elements within a specific period or project to ensure accounting accuracy.