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Monica's Closet Received Payment in Full Within the Discount Period

Question 38

Multiple Choice

Monica's Closet received payment in full within the discount period for goods sold on a $1,000 sales invoice, terms 2/10, n/30. Which entry records this payment? (Round your calculations to the nearest whole dollar.)


A) Debit Accounts Receivable $1,000; credit Sales $1,000
B) Debit Cash $1,000; credit Accounts Receivable $1,000
C) Debit Cash $980, debit Sales Discount $20; credit Sales $1,000
D) Debit Cash $980, debit Sales Discount $20; credit Accounts Receivable $1,000

Correct Answer:

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