Assuming Macoon Uses the Gross Method, the Entry to Record

question 25

Multiple Choice

Assuming Macoon uses the gross method, the entry to record the sale is

• A)A debit and credit of $7,671.60 to accounts receivable and sales respectively.
• B)A debit and credit of $8,438.76 to accounts receivable and sales respectively.
• C)A debit and credit of $8,524 to accounts receivable and sales respectively.
• D)Debits of $8,438.76 and $85.24 to accounts receivable and "forfeited sales discounts" and a credit to sales to balance

---

Definitions:

Compounded Quarterly

Interest calculation method where interest is added to the principal sum of a deposit or loan every quarter, influencing the amount in the next quarter.

Promissory Note

A monetary contract where one party commits to paying a distinct sum to another party, either on call or at a set date ahead.

Compounded Semi-Annually

Refers to the process where interest is added to the principal balance of an investment, loan, or deposit twice a year, leading to interest earning on interest previously accumulated.

Initial Investment

The upfront sum of money used to start an investment or project.