The Entry to Record the Receipt of Payment Within the Discount

question 91

Multiple Choice

The entry to record the receipt of payment within the discount period on a sale of $2500 with terms of 2/10 n/30 will include a credit to

• A) Sales Discounts for $50.
• B) Cash for $2450.
• C) Accounts Receivable for $2500.
• D) Sales Revenue for $2500.

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Definitions:

Corporate Reinvestment

The act of a company using its profits to invest back into its own operations, projects, or assets to support growth, improve products or services, and enhance shareholder value.

Company Stock

represents shares of ownership in a corporation, giving holders a claim on part of the company’s assets and earnings.

Configuration

The arrangement or set-up of components or elements in a particular form or structure.

Multinational Company

A corporation that operates in several countries but has its headquarters in one country, often involved in producing and selling goods or services in various markets.