BetterBuy Sells $50,000 of TVs to a Customer

question 73

Multiple Choice

BetterBuy sells $50,000 of TVs to a customer.The terms include a 2% discount if paid in 7 days and a 1% discount if paid in 8-14 days.BetterBuy receives the money in 12 days.How would the transaction be recorded by BetterBuy?

• A)Debit Inventory for $500 and credit Accounts Payable for $500.
• B)Debit Cash for $49,500,credit Accounts receivable for $50,000,and debit sales discounts for $500.
• C)Debit Accounts receivable for $50,000,credit Cash for $49,500,and credit sales discounts for $500.
• D)Debit Accounts Payable for $500 and credit Inventory for $500.

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Definitions:

Hans Eysenck

A psychologist who was a major contributor to the fields of personality and intelligence research.

Genes

Units of hereditary information encoded in the DNA that play a critical role in determining the characteristics and functions of an organism.

Self-actualizing

The realization or fulfillment of one's talents and potentialities, often considered as a drive or need present in everyone.

Peak Experiences

Refers to profound moments of love, understanding, happiness, or rapture that stand out from everyday events, often associated with self-actualization.