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Travis Corporation Purchases Merchandise on Account from Jackson Company, Terms

Question 207

Multiple Choice

Travis Corporation purchases merchandise on account from Jackson Company, terms 2/10, n/30.Travis and Jackson both use periodic inventory systems.If Travis pays within the discount period, Jackson will


A) debit the amount of the discount to Sales Discounts.
B) credit the amount of the discount to Cash.
C) credit the amount of the discount to Purchases Discounts.
D) credit the amount of the discount to Sales Revenue.

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