Assuming Macoon has used the net method, and payment was received within the discount period, the entry to record the receipt of payment would include

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Since Macoon used the net method, the accounts receivable balance would have been $8,524, which is the amount owed by the customer before the discount. Since payment was received within the discount period, the customer would have been entitled to a discount of $85.24 (1% of $8,524). Therefore, the entry to record the receipt of payment would be a credit to accounts receivable for $8,438.76 ($8,524 - $85.24).

Assuming Macoon Has Used the Net Method, and Payment Was