Merchandise with a sales price of $5,000 is sold on account with terms 2/10, n/30. The journal entry to record the sale would include a

Question

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The journal entry to record the sale with terms 2/10, n/30 would be:

Debit Accounts Receivable $5,000
Credit Sales $5,000

The discount available is 2% of the sales price of $5,000, which is $100. However, the discount is only available if the payment is made within 10 days. Therefore, no journal entry is needed to record the potential discount.

Option A is incorrect because cash has not been received yet.
Option B is incorrect because the discount is not yet taken.
Option D is incorrect because it does not reflect the full sales price of $5,000.

Merchandise with a Sales Price of $5,000 Is Sold on Account