Forever Jewelers Uses the Gross Method and a Perpetual Inventory

question 281

Multiple Choice

Forever Jewelers uses the gross method and a perpetual inventory system.On April 2,Forever sold merchandise with a cost of $1,700 for $5,600 to a customer on account with terms of 2/15,n/30.Which of the following would be included in the journal entry to record the cash receipt on April 10?

• A)Credit to Cash for $5,488
• B)Credit to Sales Discounts for $112
• C)Debit to Cash for $5,600
• D)Debit to Sales Discounts for $112

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Definitions:

Technological Tools

Devices or software designed to facilitate tasks, especially those related to information and communication technology.

Electronically Mediated Communication

Interpersonal communication that takes place via technology.

Smartphones

Mobile devices with advanced computing capabilities, including internet access and the ability to run various applications.

Deceptive Messages

Communications intended to mislead or falsely manipulate the perception of the receiver.