On September 12, Vander Company, Inc $$\begin{array} { | l | r | r | } \hline \text { Sales } & 5,800 & \\\hline \text { Accounts receivable } & & 5,800 \\\hline\end{array}$$

question 29

Multiple Choice

On September 12, Vander Company, Inc. sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the periodic inventory system. The journal entry or entries that Vander will make on September 12 is:

• A)\[\begin{array} { | l | r | r | }
• \hline \text { Sales } & 5,800 & \\
• \hline \text { Accounts receivable } & & 5,800 \\
• \hline
• \end{array}\]
• B)\[\begin{array} { | l | r | r | }
• \hline \text { Sales } & 5,800 & \\
• \hline \text { Accounts receivable } & & 5,800 \\
• \hline \text { Cost of goods sold } & 4,000 & \\
• \hline \text { Merchandise Inventory } & &4,000 \\
• \hline
• \end{array}\]
• C)\[\begin{array} { | l | r | r | }
• \hline \text { Accounts receivable } & 5,800 & \\
• \hline \text { Sales } & & 5,800 \\
• \hline
• \end{array}\]
• D)\[\begin{array} { | l | r | r | }
• \hline \text { Accounts receivable } & 5,800 & \\
• \hline \text { Sales } & & 5,800 \\
• \hline \text { Cost of goods sold } & 4,000 & \\
• \hline \text { Merchandise inventory } & & 4,000 \\
• \hline
• \end{array}\]
• E)\[\begin{array} { | l | r | r | }
• \hline \text { Accounts receivable } & 4,000 & \\
• \hline \text { Sales } & & 4,000 \\
• \hline
• \end{array}\]

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Holder in Due Course

A legal term for a person who has obtained a negotiable instrument in good faith and for value, thus having certain protections.