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.

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Definitions:

Per Capita Real GDP

A measure of a country's economic output that accounts for its number of people, adjusting for inflation to represent the value of goods and services produced per person.

Expenditures Approach

A method for calculating GDP that sums total spending on goods and services within an economy, including consumption, investment, government spending, and net exports.

GDP

Gross Domestic Product is the summed monetary value of all ultimate goods and services generated inside a country's territory in a defined interval.

Per Capita GDP

A metric that measures a country's economic output per person, dividing the GDP of a country by its population; often used to compare economic prosperity across countries or regions.