The Collection of a $6,000 Account Within the 2 Percent

question 187

Multiple Choice

The collection of a $6,000 account within the 2 percent discount period will result in a

• A)debit to Sales Discounts for $120.
• B)debit to Accounts Receivable for $5,880.
• C)credit to Cash for $5,880.
• D)credit to Accounts Receivable for $5,880.

---

Definitions:

Risk of Loss

The liability concern over who bears the loss if goods are damaged or destroyed during a transaction before the buyer receives them.

Tendered to the Buyer

The act of offering or presenting goods to a buyer in fulfillment of a contract or an order.

Simple Delivery Contract

An agreement where the delivery of goods or services is straightforward, without complex conditions or requirements.

Insurable Interest

A requirement in insurance policies that the policyholder must stand to suffer a financial loss or detriment if the insured event occurs, legitimizing the policy's existence.