Gappule Corp. made a $30,000 sale on account with terms of 2/15, n/30. If the company uses the net method, which of the following will be included in the journal entry to record customer payment within the discount period?
A) credit Accounts Receivable $30,000
B) debit Sales Discounts Forfeited $600
C) credit Sales Revenue $29,400
D) debit Cash $29,400

Question

Quizplus · Accepted Answer

Under the net method, sales are recorded net of discounts. The customer pays within the discount period, so the cash received is $29,400 (30,000 - 2% of 30,000).