The collection of a $2,000 account beyond the 2 percent discount period would result in a(n)
A)increase to Cash for $1,960.
B)decrease to Accounts Receivable for $2,000.
C)decrease to Cash for $2,000.
D)increase to Sales Discounts for $40.

Question

Quizplus · Accepted Answer

Collecting a $2,000 account beyond the 2 percent discount period means the full amount is paid, so Accounts Receivable decreases by the full $2,000, as the account is settled.

The Collection of a $2,000 Account Beyond the 2 Percent