The Journal Entry to Record a Customer's Payment Within the Discount

question 30

Multiple Choice

The journal entry to record a customer's payment within the discount period would include a:

• A)credit to cash
• B)debit to sales discounts
• C)debit to accounts payable
• D)credit to sales

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Definitions:

Residual Income

A measure of profit that exceeds the minimum required return on an investment or business venture.

Percentage

A proportion or share in relation to a whole, typically expressed as a fraction of 100.

Profit Margin

A financial metric used to assess a company's profitability by comparing net income to revenue.

Operating Income

The profit realized from a business's normal operations, calculated by subtracting operating expenses from gross profit.