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Merchandise Was Sold on Credit for $3,000,terms 1/10,n/30

Question 67

Multiple Choice

Merchandise was sold on credit for $3,000,terms 1/10,n/30.The correct entry to record the cash collection should be:


A) Debit Cash,$3,000,and credit Accounts Receivable,$3,000,if collected within the discount period.
B) Debit Cash,$3,000,and credit Accounts Receivable,$2,970,and Sales Discount,$30,if collected within the discount period.
C) Debit Cash,$3,000,and credit Accounts Receivable,$2,970,and Sales Discount,$30,if collected after the discount period.
D) Debit Cash,$3,000,and credit Accounts Receivable,$3,000,if collected after the discount period.

Correct Answer:

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