Lisa's Blankets and Bedding had a sale of $375 to a charge customer, terms 1/15, n/30. Lisa should record the sale portion of this transaction as follows:
A) debit Accounts Receivable $375; credit Sales $375.
B) debit Cash $375; credit Sales $375.
C) debit Accounts Receivable $371.25; debit Sales Discounts $3.75; credit Sales $375.
D) debit Sales $375; credit Accounts Receivable $375.

Question

Quizplus · Accepted Answer

The correct way to record a sale made on account (to a charge customer) is to debit Accounts Receivable for the full amount of the sale and credit Sales for the same amount. The terms 1/15, n/30 indicate a sales discount if paid early, but this does not affect the initial recording of the sale.

Lisa's Blankets and Bedding Had a Sale of $375 to a Charge