A $100,000 Sale Transaction Is Made with Terms of 5/10

question 44

Multiple Choice

A $100,000 sale transaction is made with terms of 5/10, net 30. What amount is debited to the accounts receivable account when the sale is made under the gross method of recording a discount?

• A)$95,000 credit
• B)$95,000 debit
• C)$100,000 credit
• D)$100,000 debit

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Definitions:

Experiences

The process of being directly involved in and affected by events or activities, leading to the acquisition of knowledge or skills.

Behavioural Economics

A field of study that analyzes the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Consumer Economics

A branch of economics that deals with the study of how individuals make decisions to allocate their resources over consuming goods and services.

Standard Of Living

The degree of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.