On June 3,Win-Tel Company Sold Merchandize Worth $800 on Credit,terms $\begin{array}{lcc}\text { Accounts Receivable } & 784 & \\\text { Sales Discounts } & 16 & \\\quad \text { Cash } & & 800\end{array}$

question 158

Multiple Choice

On June 3,Win-Tel Company sold merchandize worth $800 on credit,terms 2/10,n/30.The merchandize sold had cost $550.The customer paid the amount on June 10. What is the required journal entry to record the payment received under the periodic inventory system?

• A)
• \(\begin{array}{lcc}
• \text { Accounts Receivable } & 784 & \\
• \text { Sales Discounts } & 16 & \\
• \quad \text { Cash } & & 800
• \end{array}\)
• B)
• \(\begin{array}{lr}\text { Accounts Receivable }&800\\
• \text { Sales Discounts } && 16 \\
• \text { Cash } && 784
• \end{array}\)
• C)
• \(\begin{array}{lcc}
• \text { Cash } & 784 & \\
• \text { Sales Discounts } & 16 & \\
• \quad \text { Accounts Receivable } & & 800
• \end{array}\)
• D)
• \(\begin{array}{lcl}
• \text { Cash } & 800 & \\
• \text { Sales Discounts } & 16 & \\
• \quad \text { Accounts Receivable } & & 816
• \end{array}\)

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Definitions:

ACP

Accelerated cost recovery system, a method used for calculating depreciation expenses for tax purposes.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specified period, indicating operational efficiency.

Short-Term Financing

The process of obtaining funds to cover immediate needs, typically for a period of less than one year.

Cash Inflow

The money entering a business or project from various sources, such as sales, investments, financing, and operations.