The Collection of an $900 Account Within the 2 Percent

question 260

Multiple Choice

The collection of an $900 account within the 2 percent discount period will result in a

• A) debit to Sales Discounts for $18.
• B) debit to Accounts Receivable for $882.
• C) credit to Cash for $882.
• D) credit to Accounts Receivable for $882.

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Definitions:

Justiciable Controversy

A dispute that is real and substantial, able to be resolved by legal methods or courts.

Standing to Sue

The legal right of a party to bring a lawsuit, based on their stake or interest in the matter at issue.

Subject-Matter Jurisdiction

The authority of a court to hear cases of a particular type or cases relating to a specific subject matter.

Standing to Sue

The legal right to initiate a lawsuit, where the party making the claim has a direct and personal stake in the outcome of the case.