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

question 6

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 15. What is the required journal entry to record the payment received under the periodic inventory system?

• A)
• \(\begin{array}{lc}
• \text { Accounts Receivable } & 784 \\
• \text { Sales Discounts } & 16 \\
• \text { Cash } &&800
• \end{array}\)
• B)
• \(\begin{array}{ll}
• \begin{array}{c}
• \text { Accounts Receivable } & 800\\
• \text { Cash } && 800
• \end{array} \\
• \end{array}\)
• C)
• \(\begin{array}{lr}
• \text { Cash } & 784 \\
• \text { Sales Discounts } & 16 \\
• \text { Accounts Receivable } &&800
• \end{array}\)
• D)
• \(\begin{array}{ll}
• \text { Cash } & 800 \\
• \text { Accounts Receivable } && 800
• \end{array}\)

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Definitions:

New Business

A newly established company or enterprise that is in the early stages of operation and growth.

NPV

Net Present Value, a calculation that compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account.

IRR Methods

Internal Rate of Return methods are used in capital budgeting to estimate the profitability of potential investments.

Negative NPV

A condition where the net present value (NPV) of an investment is less than zero, implying that the investment’s costs outweigh its benefits.