The Entry to Record the Receipt of Payment Within the Discount

question 169

Multiple Choice

The entry to record the receipt of payment within the discount period on a sale of $2,000 with terms of 2/10, n/30 will include a credit to

• A) Sales Discounts for $40.
• B) Cash for $1,960.
• C) Accounts Receivable for $2,000.
• D) Sales Revenue for $2,000.

---

Definitions:

Imprudent Investment

Financial allocations or commitments made without proper judgment or care, often leading to significant losses or suboptimal financial performance.

Public Choice Theory

An economic theory that studies how public sector decisions are made, considering individuals in the public sector as self-interested agents and applying the tools of economics to political science.

Government Decision Making

The process by which governments choose between different policies, actions, or strategies to address specific public issues or problems.

Rent-Seeking Behavior

The actions by persons, firms, or unions to gain special benefits from government at the taxpayers’ or someone else’s expense.