The entry to record the receipt of payment within the discount period on a sale of $750 with terms of 2/10, n/30 will include a credit to
A) Sales Discounts for $15.
B) Cash for $735.
C) Accounts Receivable for $750.
D) Sales for $750.

Question

Quizplus · Accepted Answer

The entry will include a credit to Accounts Receivable for the full amount of $750, as this is the original amount owed before the discount. The discount is recorded separately.

The Entry to Record the Receipt of Payment Within the Discount