The entry to record a sale of $700 with terms of 2/10, n/30 will include a
A) credit to Sales Discounts for $14.
B) debit to Cash for $686.
C) credit to Accounts Receivable for $700.
D) credit to Sales Revenue for $700.

Question

Quizplus · Accepted Answer

The entry to record a sale involves crediting Sales Revenue for the full amount of the sale, which is $700 in this case. The discount is not recorded until it is taken by the customer.

The Entry to Record a Sale of $700 with Terms