Action Signs recorded credit sales of $10,000 on the gross method.Terms are 2/20,n/30.How would the entry to this sale be recorded?

Question

Quizplus · Accepted Answer

The gross method records sales transactions at their full amount before any discounts. Therefore, accounts receivable would increase by the full sales amount of $10,000, and sales would also be recorded at this amount. Sales discounts and cash are not directly affected by the initial recording of the sale.

Action Signs Recorded Credit Sales of $10,000 on the Gross