The Collection of a $700 Account Beyond the 2 Percent

question 267

Multiple Choice

The collection of a $700 account beyond the 2 percent discount period will result in a

• A) debit to Cash for $686.
• B) credit to Accounts Receivable for $700.
• C) credit to Cash for $700.
• D) debit to Sales Discounts for $14.

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Definitions:

Central Nervous System

The complex of nerve tissues that controls the activities of the body. In vertebrates it comprises the brain and spinal cord.

Sympathetic Nervous System

Part of the autonomic nervous system that regulates involuntary responses by stimulating activities associated with the fight-or-flight response.

Endocrine System

A network of glands that produce and release hormones to regulate various body functions including metabolism, growth, and mood.

Glands

Organs in the body that secrete hormones or other substances directly into the blood or onto a surface within or outside the body.