The Entry to Record the Receipt of Payment Within the Discount

question 178

Multiple Choice

The entry to record the receipt of payment within the discount period on a sale of $750 with terms of 2/10, n/30 will include a credit to

• A) Sales Discounts for $15.
• B) Cash for $735.
• C) Accounts Receivable for $750.
• D) Sales for $750.

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Definitions:

Bank of Paid Time

A system used by some employers where employees can accumulate paid time off, such as sick leave and vacation time, in a single account.

Preferred Provider Organization

A managed healthcare system in which members are encouraged to use a network of preferred doctors and hospitals for their health care needs, often at lower costs.

Managed Care Plan

A type of health insurance plan that contracts with medical providers and facilities to provide care for members at reduced costs.

Health Maintenance Organization

A type of health insurance plan that gives access to certain doctors and hospitals, often emphasizing prevention and wellness.