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.

Recognize the importance of crisis management in organizations.

Learn about service quality dimensions and their significance in customer satisfaction.

Understand different perspectives on product quality.

Understand the laws and acts related to unethical behavior and discrimination in the workplace.

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Definitions:

Firearms

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A set of rules specifying the attire expected to be worn by individuals in certain environments or situations.