Using a periodic inventory system, the sellers journal entry to record the payment for merchandise, received from the buyer, within the discount period includes a:
A) Debit to Sales Discounts
B) Credit to Sales Discounts
C) Debit to Accounts Receivable
D) Debit to Cost of Goods Sold

Question

Quizplus · Accepted Answer

Under a periodic inventory system, when a seller receives payment for merchandise within the discount period, the following entry is made by the seller:
Cash XXX
Sales discounts XXX
$\quad $ $\quad $ $\quad $ $\quad $ Accounts receivable XXX

Using a Periodic Inventory System, the Sellers Journal Entry to Record