Kristi's pottery sold 250 tiles at $25.00 each to a charge customer, terms 1/10, n/30. The tiles cost Kristi's $10.00 each. Which entry is required to record the sale portion of this transaction?
A) Debit Cash for $6,250; credit Tile Sales for $6,250
B) Debit Accounts Receivable for $6,187.50; credit Tile Sales for $6,187.50
C) Debit Accounts Receivable for $6,187.50; debit Sales Discount for $62.50, and credit Tile Sales for $6,250
D) Debit Accounts Receivable for $6,250; credit Tile Sales for $6,250

Question

Quizplus · Accepted Answer

The sale is for 250 tiles at $25.00 each, totaling $6,250. The terms 1/10, n/30 indicate a discount if paid early, but the sale itself is recorded at the full amount. Therefore, Accounts Receivable is debited and Tile Sales credited for the full sale amount of $6,250.

Kristi's Pottery Sold 250 Tiles at $25