The collection of a $1,500 account after the 2 percent discount period will result in a
A) debit to Cash for $1,470.
B) debit to Accounts Receivable for $1,500.
C) debit to Cash for $1,500.
D) debit to Sales Discounts for $30.

Question

Quizplus · Accepted Answer

Since the collection is after the discount period, the full amount of $1,500 will be credited to Accounts Receivable and debited to Cash. There is no sales discount or reduction in price, so there is no debit to Sales Discounts.

The Collection of a $1,500 Account After the 2 Percent