A Company Sells Merchandise for $1,000 on Account with Terms

question 103

Multiple Choice

A company sells merchandise for $1,000 on account with terms of 2/10,n/30.Defective merchandise of $200 is returned 2 days later.Which of the following entries would be made to record the cash receipt for the sale if the payment is received within 10 days?

• A) The accounting entry would be an $800 debit to Cash and an $800 credit to Accounts receivable.
• B) The accounting entry would be a $784 debit to Cash, a $16 debit to Sales discounts and an $800 credit to Accounts receivable.
• C) The accounting entry would be a $16 debit to Sales discounts, an $800 debit to Cash and an $816 credit to Accounts receivable.
• D) The accounting entry would be an $800 debit to Cash, a $16 credit to Sales discounts and a $784 credit to Accounts receivable.

---

Definitions:

Incongruence

A state of being where there is a discrepancy between one's perceived self and their ideal self, leading to emotional turmoil.

Carl Rogers

An influential American psychologist who founded the humanistic approach to psychology, emphasizing the individual's inherent potential for self-actualization.

Self-Monitoring

The ability of individuals to regulate their behavior to accommodate social situations, observing and controlling their expressive behavior and self-presentation.

Behavioural Approach

A psychological perspective focusing on observable behaviors and how they're learned through interactions with the environment.