Eastern Outfitters Sold $2,500 of Inventory to a Customer on Account

question 150

Multiple Choice

Eastern Outfitters sold $2,500 of inventory to a customer on account, terms 3/15 n/40. Freight terms were FOB shipping point and freight charges totalled $150. The entry to record the sale would include a:

• A)credit to Accounts Receivable for $2,350.
• B)debit to Sales Revenue for $2,500.
• C)credit to Sales Revenue for $2,500.
• D)debit Accounts Receivable for $2,650.

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Definitions:

Premature

Occurring or done before the usual or proper time; too early.

Incubator

A device providing controlled environmental conditions for the care and growth of premature babies or the cultivation of microbiological cultures.

Neonatal ICU

A specialized unit within a hospital dedicated to the intensive care of ill or premature newborn infants.

Attachment

An emotional bond between individuals, particularly between a child and caregiver, which is critical for the child's development and psychological security.