Sagan Company Uses the Perpetual Inventory Method

question 195

Multiple Choice

Sagan Company uses the perpetual inventory method.On October 6,Sagan sold merchandise to Parley Co.for $20,000 under credit terms of 2/10,n/60.On October 9,Parley returned $5,000 of that merchandise.On October 15,Sagan received balance due from Parley Co.How would Sagan record this transaction?

• A)Debit Cash for $20,000 and credit Accounts Receivable for $20,000.
• B)Debit Cash for $15,000 and credit Accounts Receivable for $15,000.
• C)Debit Cash for $14,700,debit Sales Discounts for $300,and credit Accounts Receivable for $15,000.
• D)Debit Cash for $14,700,debit Sales Discounts for $300,and credit Sales for $15,000.
• E)Debit Cash for $15,000,credit Sales Discounts for $300,and credit Accounts Receivable for $14,700

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Definitions:

Masturbation

The self-stimulation of the genitals to achieve sexual pleasure and arousal, which can be a part of normal sexual behavior.

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The developmental period when a child's body transitions into an adult body capable of sexual reproduction.

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A developmental stage between childhood and adulthood, marked by physical, psychological, and social changes.