On October 1,Robertson Company Sold Merchandise in the Amount of $5,800

question 193

Multiple Choice

On October 1,Robertson Company sold merchandise in the amount of $5,800 to Alberts,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Robertson uses the perpetual inventory system.Alberts pays the invoice on October 8 and takes the appropriate discount.The journal entry that Robertson makes on October 8 is:

• A)
• \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 5,800 & \\
• \hline \text { Accounts receivable } & & 5,800 \\
• \hline
• \end{array}\]
• B)
• \(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 4,000 & \\
• \hline \text { Accounts receivable } & & 4,000 \\
• \hline
• \end{array}\)
• C)
• \[\begin{array} { |l | r | r | }
• \hline \text { Cash } & 3,920 & \\
• \hline \text { Sales discourts } & 80 & \\
• \hline \text { Accounts receivable } & & 4,000 \\
• \hline
• \end{array}\]
• D)
• \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 5,684 & \\
• \hline \text { Accounts receivable } & & 5,684 \\
• \hline
• \end{array}\]
• E)
• \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 5,684 & \\
• \hline \text { Sales discounts } & 116 & \\
• \hline \text { Accounts receivable } & & 5,800 \\
• \hline
• \end{array}\]

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Definitions:

Internationalization Process

The process through which a company expands its operations beyond its national borders into the international market.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or any other business activity, sharing the risks and rewards.

Authorized

Having official permission or approval to do something.

Specified Territory

A clearly defined geographic or conceptual area designated for a specific purpose or assigned to a person or entity.