The entry to record the receipt of payment within the discount period on a sale of $2500 with terms of 2/10 n/30 will include a credit to
A) Sales Discounts for $50.
B) Cash for $2450.
C) Accounts Receivable for $2500.
D) Sales Revenue for $2500.

Question

Quizplus · Accepted Answer

The entry will include a credit to Accounts Receivable for $2500, as this is the original amount owed by the customer. The discount of $50 is recorded separately as a debit to Sales Discounts, and the cash received is $2450.

The Entry to Record the Receipt of Payment Within the Discount