The collection of an $1,500 account within the 2 percent discount period will result in a
A)debit to Sales Discounts for $30.
B)debit to Accounts Receivable for $1,470.
C)credit to Cash for $1,470.
D)credit to Accounts Receivable for $1,470.

Question

Quizplus · Accepted Answer

When a customer pays within the discount period, the company records the discount as a debit to Sales Discounts, which in this case is 2% of $1,500, or $30.

The Collection of an $1,500 Account Within the 2 Percent