Maxie's Game World sold games to a customer on credit for $2,600,terms 1/10,n/30 and the cost of the games was $1,700.When recording the sales transaction in its sales journal,Maxie's would enter:
A)$1,700 in the Accounts Receivable Dr./Sales Cr.column and $2,600 in the Cost of Goods Sold Dr./Inventory Cr.column.
B)$2,600 in the Accounts Receivable Dr./Sales Cr.column and $1,700 in the Accounts Payable Dr./Purchases Cr.column.
C)$2,600 in the Accounts Receivable Dr./Sales Cr.column and $2,600 in the Cash Cr.column.
D)$2,600 in the Accounts Receivable Dr./Sales Cr.column and $1,700 in the Cost of Goods Sold Dr./Inventory Cr.column.
E)$1,700 in the Accounts Receivable Dr./Sales Cr.column and $2,600 in the Other Accounts column Dr.column.

Question

Quizplus · Accepted Answer

Maxie's Game World recorded the credit sale of $2,600 in the Accounts Receivable Dr./Sales Cr. column, as the customer will pay within 30 days. To record the cost of the games, Maxie's would enter $1,700 in the Cost of Goods Sold Dr./Inventory Cr. column since the goods have been sold and removed from inventory.

Maxie's Game World Sold Games to a Customer on Credit