Pierce Company sold merchandise to Stanton Company on account FOB shipping point, 2/10, net 30, for $20,000. Pierce prepaid the $500 shipping charge. Which of the following entries does Pierce make to record this sale?
A) Accounts Receivable-Stanton, debit $20,000; Sales, credit $20,000
B) Accounts Receivable-Stanton, debit $19,600; Sales, credit $19,600, and
Accounts Receivable-Stanton, debit $500; Cash, credit $500
C) Accounts Receivable-Stanton, debit $20,100; Sales, credit $20,100
D) Accounts Receivable-Stanton, debit $20,000; Sales, credit $20,000, and
Delivery Expense, debit $500; Cash, credit $500
Correct Answer:
Verified
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