Merchandise was sold on credit for $10,000,terms 2/10,n/30.Which of the following journal entry descriptions correctly describes the cash collection?
A) Cash is debited for $10,000 and accounts receivable is credited for $10,000 if the collection is within the discount period.
B) Cash is debited for $10,000, accounts receivable is credited for $9,800 and sales discounts is credited for $200 if the collection is within the discount period.
C) Cash is debited for $10,000, accounts receivable is credited for $9,800, and sales discounts is credited for $200 if the collection is after the discount period.
D) Cash is debited for $10,000, accounts receivable is credited for $10,000 if the collection is after the discount period.
Correct Answer:
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