On June 3,Win-Tel Company sold merchandise worth $800 on credit,terms 2/10,n/30.The merchandise sold had cost $550.The customer paid the amount on June 10. What is the required journal entry to record the payment received under the periodic inventory system?
A) Accounts Receivable 784
Sales Discounts 16
Cash 800
B) Accounts Receivable 800
Sales Discounts 16
Cash 784
C) Cash 784
Sales Discounts 16
Accounts Receivable 800
D) Cash 800
Sales Discounts 16
Accounts Receivable 816

Question

Quizplus · Accepted Answer

The journal entry to record the sale:
Accounts Receivable 800
Sales 800
Cost of Goods Sold 550
Inventory 550

The customer pays within the discount period, so the Sales Discounts account needs to be credited:
Cash 784 [$800 - ($800 x 2%)]
Sales Discounts 16 [$800 x 2%]
Accounts Receivable 800

On June 3,Win-Tel Company Sold Merchandise Worth $800 on Credit,terms