The Entry to Record a Sale of $525 with Terms

question 95

Multiple Choice

The entry to record a sale of $525 with terms of 2/10, n/30 will include a

• A)debit to Sales Discounts for $10.50.
• B)debit to Sales for $514.50.
• C)credit to Accounts Receivable for $525.
• D)credit to Sales for $525.

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Definitions:

Labor

The physical and mental effort used to produce goods and services.

Normal Good

A good for which demand increases when consumer income rises, and decreases when consumer income falls.

Inferior Good

A type of good whose demand decreases when consumer income rises, contrary to normal goods, which see increased demand as incomes rise.

Inferior Good

A type of good whose demand decreases when the income of consumers increases.