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

Question 37

Multiple Choice

Sue's Jewelry sold 25 necklaces for $25 each to a credit customer. The cost of the necklaces to Sue's Jewelry was $15 plus 5% GST. The invoice included a 6% provincial sales tax, 5% GST, and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the original sale would include


A) a credit to Inventory for $75.
B) a credit to Inventory for $84.75.
C) a debit to Sales Returns and Allowances for $75.
D) a debit to Sales Returns and Allowances for 84.75.

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