Fraxon Inc.made a $10,000 sale on account with terms: of 1/15,n/30.If the company uses the gross method,which of the following will be included in the journal entry to record customer payment within the discount period?
A)credit Accounts Receivable $10,000
B)credit Sales Discount $100
C)credit Sales Revenue $10,000
D)credit Cash $9,900

Question

Quizplus · Accepted Answer

When using the gross method, the full amount of the sale is initially recorded. If the customer pays within the discount period, the entry will include a credit to Accounts Receivable for the full amount of $10,000, reflecting the reduction in the amount owed.