Maxie's Game World Sold Games to a Customer on Credit

question 127

Multiple Choice

Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When recording the collection from the customer made within the discount period, in its cash receipts journal, Maxie's would enter:

• A) $2,600 in the Cash Dr. column. $2,600 in the Sales Cr. column, and $1,700 in the Cost of Goods Sold Dr./Inventory Cr. column.
• B) $2,574 in the Cash Dr. column, $26 in the Sales Discount Dr. column and $2,600 in the Accounts Receivable Cr. column.
• C) $2,574 in the Cash Dr. column and $2,574 in the Accounts Receivable Cr. column.
• D) $2,600 in the Cash Dr. column and $2,600 in the Accounts Receivable Cr. column.
• E) $2,600 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Cash Cr. column.

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Definitions:

Standard Deviation

A statistic that quantifies the amount of variation or dispersion of a set of data values, typically used to measure how spread out the numbers in a data set are.

Slope

A measure of the steepness, incline, or grade of a line, indicating the ratio of the vertical change to the horizontal change between two points on the line.

90th Percentile

A value below which 90% of the data points in a dataset fall.

Yearly Donations

The total sum of money given by donors to an organization within a year.