A Sale on March 21 with Terms of N/10 Eom

question 62

Multiple Choice

A sale on March 21 with terms of n/10 eom is due to be collected by

• A)April 30.
• B)March 31.
• C)April 10.
• D)April 1.

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Definitions:

General Journal

A primary accounting record used to record all types of accounting transactions including both debits and credits.

Ledger

A book or collection of financial accounts.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts in order to verify that debits equal credits.

Prepaid Expenses

Upfront costs incurred for items or services that are to be obtained in the upcoming time.