Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% sales tax.Terms of the sale were 2/10,n/30.Which entry is required to record this?

Question

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The terms 2/10, n/30 indicate that the buyer can receive a 2% discount if the payment is made within 10 days, otherwise the full amount is due within 30 days. In this scenario, the buyer paid within the credit period, but did not take advantage of the discount. Therefore, the entry should be a debit to Cash for the full amount of $936 ($900 + 6% sales tax), a debit to Sales Discount for the amount of the discount ($18), and a credit to Accounts Receivable for the full amount of $954 ($900 + 6% sales tax).

Secret Trails Received Payment in Full Within the Credit Period