Rockhill Industries received payment after the expiration of the discount period from a customer who had purchased merchandise on account. The sales invoice was for $3,000, and credit terms were 3/15 n/30. The cost of the merchandise was $1,800. In the cash receipts journal:
A)$3,000 will appear in the sales revenue credit column.
B)$3,000 will appear in the accounts receivable debit column.
C)$3,000 will appear in the accounts receivable credit column.
D)$90 will appear in the sales discounts debit column.

Question

Quizplus · Accepted Answer

The full invoice amount of $3,000 will be credited to accounts receivable since the payment was received after the discount period, meaning no discount was applied.

Rockhill Industries Received Payment After the Expiration of the Discount