Garza Company Made a $135,000 Sale with Terms 2/10, N/45

question 203

Multiple Choice

Garza Company made a $135,000 sale with terms 2/10, n/45: If the company uses the gross method of accounting for sales, the sale should be recorded with a debit to Accounts Receivable and a credit to Sales for which of the following amounts?

• A)$135,000.
• B)$132,300.
• C)$137,700.
• D)$121,500.
• E)$148,500.

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Definitions:

Intestate Succession

The legal process by which property is distributed to heirs according to state laws when someone dies without a valid will.

Domiciled

The legal term for the country or place where a person has their permanent home or principal establishment and to which they intend to return.

English Feudal System

A hierarchical system of land ownership and duties in medieval England, centered around the king granting land to lords in exchange for military service.

Disposition

The act of selling, giving, or transferring ownership or control of property or assets.