A Merchandiser Received Payment in Full Within the Discount Period

question 44

Multiple Choice

A merchandiser received payment in full within the discount period on a $5,000 sales invoice, terms 2/15 n/30. The journal entry would include a:

• A)debit to Cash for $5,000.
• B)credit to Accounts Receivable for $5,000.
• C)credit to Accounts Receivable for $4,900.
• D)credit to Sales Discounts for $100.

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Definitions:

Appropriateness

The degree to which communication actions are suitable for a particular context or environment.

Consistency

The quality of always behaving or performing in a similar way, or producing the same results, thereby allowing for reliability or dependability.

Cognitive Dissonance

A psychological phenomenon where a person experiences discomfort or distress from holding two or more conflicting beliefs, values, or attitudes.

Credibility

The characteristic of being deemed reliable and credible.