A Company Sold Merchandise for $20,000 on Account with Terms

question 88

Multiple Choice

A company sold merchandise for $20,000 on account with terms of 3/10, n/30. The company uses a perpetual inventory system. After two days, it received defective merchandise worth $2,000. The journal entry to record the cash receipt for sale if the payment is received within 10 days of the invoice date would include:

• A)a debit to Cash for $17,460, a credit to Merchandise Inventory for $540, and a credit to Sales Revenue for $18,000.
• B)a debit to Cash for $17,460, a debit to Sales Discount for $540, and a credit to Accounts Receivable for $18,000.
• C)a debit to Cash for $18,000, a debit to Merchandise Inventory for $2,000 and a credit to Accounts Receivable.
• D)a debit to Sales for $20,000, a credit to Accounts Receivable for $20,000, and a credit to Sales Discount for $2,000.

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Definitions:

Half-Lives

The time required for half of the atoms in a radioactive sample to decay into other elements or isotopes.

Half-Lives

The time required for a quantity to reduce to half its initial value, commonly used in the context of radioactive decay.

Half-Life

The time required for half of the atoms in a sample of a radioactive substance to undergo radioactive decay.