On November 10 of the Current Year, Cherokee Industries Sold

question 182

Multiple Choice

On November 10 of the current year, Cherokee Industries sold materials to a customer for $8,000 with credit terms 2/10, n/30. Cherokee uses the net method of accounting for cash discounts. What entry would Cherokee make on December 10, assuming the correct payment was received on that date?

• A) \(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 8,000 & \\
• \hline \text { Accounts receivable } & & 7,840 \\
• \hline \text { Discounts revenue } & & 160 \\
• \hline
• \end{array}\)
• B) \(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 8,000 & \\
• \hline \text { Accounts receivable } & & 7,840 \\
• \hline \text { Sales discounts forfeited } & & 160 \\
• \hline
• \end{array}\)
• C) \(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 8,160 & \\
• \hline \text { Accounts receivable } & & 8,000 \\
• \hline \text { Sales discounts forfeited } & & 160 \\
• \hline
• \end{array}\)
• D) \(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 8,000 & \\
• \hline \text { Accounts receivable } & & 8,000 \\
• \hline
• \end{array}\)

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Definitions:

Jury

A group of citizens assembled to hear evidence in a trial and render a verdict on matters of fact in civil or criminal cases.

Motion To Dismiss

A legal filing requesting the court to rule that the plaintiff's case is insufficient on its face and should be thrown out without further evidence or trial.

Motion For A New Trial

A formal request to a court to nullify a jury's verdict and order a new trial, typically on the basis of procedural errors or issues affecting the fairness of the trial.

Minitrial

A voluntary, private, informal trial with a goal to facilitate dispute resolution between parties, often with an advisor or judge who provides a non-binding verdict.