Assume the periodic inventory system is used.Krinkle Company sold inventory on account for $500 on May 8,20X3,with terms of 2/10,n/30.On May 16,20X3 the appropriate payment was received from the customer.Which of the following is the journal entry to record the May 16 transaction on Krinkle's books?

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Since the terms of the sale were 2/10,n/30, the customer is eligible for a 2% cash discount if they pay within 10 days. This means that if the customer pays within 10 days, they only have to pay $490 ($500 - 2% discount of $10). On May 16, the customer paid the full amount of $500, but since they were eligible for a discount, Krinkle should debit Cash for $490 (the actual amount received) and debit Cash Discounts on Sales for $10 (the amount of the discount). The credit will be to Accounts Receivable for the full amount of $500.

Assume the Periodic Inventory System Is Used Cash 500 Accounts Receivable 500\begin{array}{lll}\text { Cash } & 500 \\\quad \text { Accounts Receivable } & & 500 \\\end{array} Cash Accounts Receivable ​500​500​

Assume the Periodic Inventory System Is Used $\begin{array}{lll}\text { Cash } & 500 \\\quad \text { Accounts Receivable } & & 500 \\\end{array}$