Valerie's Market uses a perpetual inventory system when recording its cash payments and cash receipts. The business sells $6,000 of goods to a charge account customer with terms of 2/10, n/30. If the customer pays within the discount period, the entry to record the receipt of cash from the customer would include:
A) a debit to Cash for $5,880 and a credit to Accounts Receivable for $5,880
B) a debit to Cash for $5,880; a debit to Purchase Discounts for $120 and a credit to Accounts Receivable for $5,880
C) a debit to Cash for $6,000 and a credit to Accounts Receivable for $6,000
D) a debit to Cash for $5,880; a debit to Sales Discounts for $120 and a credit to Accounts Receivable for $6,000
Correct Answer:
Verified
Q38: Identify the procedure below that is NOT
Q39: A check for $2,560 to pay a
Q40: To arrive at an accurate balance on
Q41: The entry to record the issuance of
Q42: Hawthorne Inc. uses the perpetual inventory system
Q44: Included on a firm's bank statement was
Q45: If a check written by a firm
Q46: Indicate in which section of the Bank
Q47: Merchandise is sold for $5,600, terms 1/10,
Q48: Beckett Co. sold merchandise on account for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents