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

question 73

Multiple Choice

A $50,000 sale transaction is made with terms of 2/10, net 30. What amount is debited to the accounts receivable account when the sale is made under the gross method of accounting for cash discounts?

• A)$49,000 credit
• B)$49,000 debit
• C)$50,000 credit
• D)$50,000 debit

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Definitions:

12b-1 Fee

A fee charged by mutual funds to cover distribution and marketing expenses, included in the fund's expense ratio and paid by its shareholders.

NAV

Net Asset Value, the total value of all the securities in an investment portfolio minus any liabilities, divided by the number of shares outstanding.

Asset Growth

The increase in the value of a company's assets over time, which can be due to investment returns or contributions.

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the leverage level and financial health.