The Collection of a $2,000 Account Within the 2 Percent

question 5

Multiple Choice

The collection of a $2,000 account within the 2 percent discount period will result in a

• A)debit to Sales Discounts for $40.
• B)debit to Accounts Receivable for $1,960.
• C)credit to Cash for $1,960.
• D)credit to Accounts Receivable for $1,960.

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Definitions:

Tangibles

Physical items or properties that can be seen, touched, and quantified, as opposed to intangible assets like patents or trademarks.

Service Quality

The evaluation of how well a delivered service meets or exceeds customers' expectations and needs.

Performance Gap

The difference between the actual performance of an organization and its potential or desired performance.

Standards Gap

The difference between existing standards and the newly established benchmarks that need to be met, often leading to a period of adjustment for organizations.