On 10 April, Pro Supplies received a cheque from Carter Services for payment of an invoice dated 24 March for $4 400, including GST. Credit terms are 3/30. How would this transaction be recorded in Pro's cash receipts journal?
A) debit Cash $4 268, debit GST clearing account $12, debit sales discount $120, credit accounts receivable- Carter Services $4 400
B) debit Cash $4 400, credit Accounts receivable- Carter Services $4 400
C) debit Cash $4 400, credit GST clearing account $12, credit sales discount $120, credit accounts receivable- Carter Services $4 268
D) none of the above
Correct Answer:
Verified
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