The Collection of a $600 Account Beyond the 2 Percent

question 196

Multiple Choice

The collection of a $600 account beyond the 2 percent discount period will result in a

• A) debit to Cash for $588.
• B) debit to Accounts Receivable for $600.
• C) debit to Cash for $600.
• D) debit to Sales Discounts for $12.

---

Definitions:

Agreement

An agreement is a mutual understanding or arrangement, typically formalized in writing, between two or more parties regarding their respective rights and duties.

Normative Appeal

A persuasive strategy that relies on societal norms and values to influence behavior.

Verbal Negotiation Tactics

Strategies used in dialogue to persuade or influence others to reach an agreement.

Terms

Conditions or stipulations specified in an agreement, contract, or understanding between parties.