A business made a $500 credit sale subject to terms of 2/10, net/30. Ignoring GST, how would the receipt of cash within the discount period be recorded?
A) Increase cash and decrease accounts receivable by $500.
B) Increase cash and decrease accounts receivable by $490.
C) Increase cash by $490, decrease accounts receivable by $500, and decrease sales revenue by $10.
D) Increase cash by $490, decrease accounts receivable by $500, and increase sales revenue by $10.
Correct Answer:
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