The entry to record a $750 sale with terms of 2/10,n/30 would include a(n)
A) decrease to Accounts Receivable for $750.
B) increase to Sales for $750.
C) increase to Sales Discounts for $15.
D) decrease to Sales for $735.

Question

Quizplus · Accepted Answer

When recording a sale with terms of 2/10,n/30, we first account for the full amount of the sale as an increase to Sales for $750. We do not decrease Accounts Receivable until the payment is received, so option A is incorrect. Option C is also incorrect because the sale qualifies for a 2% discount ($750 x 0.02 = $15), but this amount would be recorded as a decrease to Accounts Receivable if the customer takes the discount. Option D is incorrect because it suggests a decrease to Sales, which is not accurate. Therefore, the correct answer is B, an increase to Sales for $750.

The Entry to Record a $750 Sale with Terms of 2/10,n/30