The Entry to Record a Sale of $1,200 with Terms

question 13

Multiple Choice

The entry to record a sale of $1,200 with terms of 2/10, n/30 will include a

• A) debit to Sales Discounts for $24.
• B) debit to Sales Revenue for $1,176.
• C) credit to Accounts Receivable for $1,200.
• D) credit to Sales Revenue for $1,200.

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Definitions:

Comparative Financial Statements

Financial statements that present financial information for multiple periods side-by-side, allowing for analysis and comparison across different time frames.

Double-Declining-Balance

A method of accelerated depreciation that doubles the rate at which an asset’s book value depreciates, allowing for a larger expense deduction in the early years of the asset’s life.

Straight-Line Depreciation

A method of allocating an asset's cost evenly over its useful life.

Mandatory Adoption

A requirement for companies to follow specific new accounting standards or regulations by a specified date.