Cupcake Corp. has sold goods at terms 2/10, n/30. If the discount is not taken, the amount receivable is $8,725. The entry to record the sale is

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The correct entry to record the sale is a debit and credit of $8,725 to Accounts Receivable and Sales respectively. This is because the terms 2/10, n/30 indicate a discount if paid within 10 days, but if the discount is not taken, the full amount of $8,725 is recorded.