A Merchandiser Received Payment in Full After the Expiration of the Discount

question 65

Multiple Choice

A merchandiser received payment in full after the expiration of the discount period on a $3,000 sales invoice, terms 3/15 n/30. The journal entry would include a:

• A)debit to Cash for $2,910.
• B)credit to Accounts Receivable for $2,910.
• C)debit to Sales Discount of $90.
• D)debit to Cash for $3,000.

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Definitions:

Exports and Imports

The act of selling goods and services to another country (exports) and buying goods and services from another country (imports).

Washing Machines

Household appliances designed to clean laundry by combining water, detergent, and mechanical action to remove dirt from clothes, linens, and other fabrics.

Manufactured

The process of producing goods on a large scale using labor, machines, tools, and chemical or biological processing or formulation.