Sue's Jewelry sold 30 necklaces for $25 each to a credit customer.The invoice included a 6% sales tax and payment terms of 2/10,n/30.In addition,5 necklaces were returned prior to payment.The entry to record the payment would include:

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The original sale was for 30 necklaces at $25 each, totaling $750. With a 6% sales tax, the total invoice amount was $795. Five necklaces were returned, reducing the amount by $125 (5 x $25), and the sales tax by $7.50 (6% of $125), making the adjusted total $662.50. The payment terms of 2/10, n/30 imply a 2% discount if paid within 10 days, but since the question asks for the entry to record the payment, it implies the payment was made within the discount period. Therefore, the discount is $13.25 (2% of $662.50), and the cash payment would be $649.25. However, the entry to record the payment would include a credit to Accounts Receivable for the full adjusted amount of $662.50.

Sue's Jewelry Sold 30 Necklaces for $25 Each to a Credit