The collection of a $6000 account within the 3 percent discount period will result in a
A) debit to Sales Discounts for $180.
B) debit to Accounts Receivable for $5820.
C) credit to Cash for $5820.
D) credit to Accounts Receivable for $5820.

Question

Quizplus · Accepted Answer

When a $6000 account is collected within the 3 percent discount period, the discount amount is $180 (3% of $6000). This discount is recorded as a debit to Sales Discounts.

The Collection of a $6000 Account Within the 3 Percent