A Company Sold Merchandise for $4,000 on Account with Terms

question 25

Multiple Choice

A company sold merchandise for $4,000 on account with terms of 4/15,n/30.The company uses a perpetual inventory system.Defective merchandise of $200 was returned two days later.If the payment was received after 30 days,the journal entry to record the cash receipt will include ________.

• A)a debit to Cash for $3,840 and a credit to Accounts Receivable for $3,840
• B)a debit to Cash for $3,800 and a credit to Accounts Receivable for $3,800
• C)a credit to Sales Revenue for $3,800 and a debit to Cash for $3,800
• D)a credit to Cost of Goods Sold for $4,000 and a debit to Sales Revenue for $4,000

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Definitions:

Mesophyll Tissue

The inner tissue of a leaf, containing many chloroplasts where photosynthesis takes place.

Photosynthesis

The process by which green plants, algae, and certain bacteria transform light energy into chemical energy, producing oxygen and glucose from carbon dioxide and water.

Nodes

Points of intersection or branching, such as within a network, or specific regions on a plant stem where leaves are attached.

Specialized Stem

A stem modified for functions other than support and conduction, such as storage, photosynthesis, or propagation.