Assuming Macoon Has Used the Net Method, and Payment Was

question 40

Multiple Choice

Assuming Macoon has used the net method, and payment was received within the discount period, the entry to record the receipt of payment would include

• A)An additional debit of $85.24 to accounts receivable
• B)A credit of $8,438.76 to accounts receivable
• C)A credit of $85.24 to sales
• D)A debit of $85.24 to "forfeited sales discounts"

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Definitions:

Total Costs

The complete amount of costs incurred by a business to produce a specific amount of goods or services, including fixed and variable costs.

Total Variable Costs

The sum of all costs that vary with the level of output, including costs for raw materials, labor, and other expenses that increase as production increases.

Marginal Cost

Additional expense associated with making one more unit of a product, focusing on the variable cost component increase.

Total Costs

The sum of all costs incurred in the production of goods or services, including both fixed and variable costs.