Sue's Jewelry sold 30 necklaces for $25 each to a credit customer.The invoice included a 6% sales tax and payment terms of 2/10,n/30.In addition,5 necklaces were returned prior to payment.The entry to record the payment after the discount period would include:

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The original sale was for 30 necklaces at $25 each, totaling $750. With a 6% sales tax, the total invoice amount was $795. Five necklaces were returned, reducing the amount by $125 (5 x $25), and the sales tax by $7.50 (6% of $125), making the adjusted total $662.50. Since the payment was made after the discount period, no discount is applied, so the credit to Accounts Receivable is for the full adjusted amount of $662.50.

Sue's Jewelry Sold 30 Necklaces for $25 Each to a Credit