Betsy's pottery sold 300 tiles at $40 each to a charge customer, terms 1/10, n/30. Which entry is required to record this transaction? (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)

Question

Quizplus · Accepted Answer

The correct entry to record the sale of tiles on account (charge customer) at $40 each for a total of 300 tiles is to debit Accounts Receivable for the total sale amount ($12,000) and credit Tile Sales for the same amount. The terms 1/10, n/30 indicate a sales discount if paid within 10 days, but this does not affect the initial recording of the sale.

Betsy's Pottery Sold 300 Tiles at $40 Each to a Charge