Inventory was sold on credit for $3,000,terms 1/10,n/30.How should the seller record the cash collection?
A) Debit Cash for $3,000 and credit Accounts Receivable for $3,000, if collected within the discount period.
B) Debit Cash for $3,000, credit Accounts Receivable for $2,970, and credit Sales Discounts for$30, if collected within the discount period.
C) Debit Cash for $3,000, credit Accounts Receivable for $2,970, and credit Sales Discounts for$30, if collected after the discount period.
D) Debit Cash for $3,000 and credit Accounts Receivable for $3,000, if collected after the discount period.
Correct Answer:
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