A $50,000 Sale Transaction Is Made with Terms of 2/10

question 13

Multiple Choice

A $50,000 sale transaction is made with terms of 2/10, net 30. Assuming that the customer takes the discount, what amount is booked to the "cash discount" account under the gross method of accounting for cash discounts?

• A)$0
• B)$1,000 debit
• C)$1,000 credit
• D)$49,000 debit

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