Gappule Corp.made a $10,000 sale on account with terms: of 1/15,n/30.If the company uses the net 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)debit Sales Discounts Forfeited $100
C)credit Sales Revenue $9,900
D)debit Cash $9,900

Question

Quizplus · Accepted Answer

The net method assumes that the customer will take the discount and pay within the discount period. Therefore, the journal entry to record the payment will include a debit to Cash for the amount received, and a credit to Accounts Receivable for the full amount of the sale. No sales discounts forfeited account will be used, as the customer took the discount. Therefore, option D is the correct choice.