The collection of a $1,000 account beyond the 2 percent discount period would result in a(n)
A) increase to Cash for $980.
B) decrease to Accounts Receivable for $1,000.
C) decrease to Cash for $1,000.
D) increase to Sales Discounts for $20.

Question

Quizplus · Accepted Answer

When the account is collected beyond the discount period, the full amount of $1,000 is received, decreasing Accounts Receivable by $1,000.

The Collection of a $1,000 Account Beyond the 2 Percent