The Entry to Record the Receipt of Payment Within the Discount

question 169

Multiple Choice

The entry to record the receipt of payment within the discount period on a sale of $2,000 with terms of 2/10, n/30 will include a credit to

• A) Sales Discounts for $40.
• B) Cash for $1,960.
• C) Accounts Receivable for $2,000.
• D) Sales Revenue for $2,000.

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Definitions:

Collective Willingness

The aggregated preference or desire of a group of individuals to support or buy into a particular idea, policy, or product.

Marginal Cost

The boost in complete costs associated with creating one more unit of a product or service.

Private Good

A product that is excludable and rival in consumption, meaning its use is limited to the purchaser and it cannot be shared without diminishing availability to others.

Rivalry

Competition or contention between two or more parties for a goal that only one can attain.