A credit sale of $2,500, terms 1/20, n/30, should be recorded with which of the following journal entries?

Name: A credit sale of $2,500, terms 1/20, n/30, should be recorded with which of the following journal entries?
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Question

Quizplus · Accepted Answer

The journal entry for the credit sale of $2,500, terms 1/20, n/30 would be:

Accounts Receivable - $2,500
Sales - $2,500

If the customer pays within the discount period, the company would record the following journal entry:

Cash - $2,450
Sales Discount - $50
Accounts Receivable - $2,500

A Credit Sale of $2,500, Terms 1/20, N/30, Should Be