On December 1,Macy Company sold merchandise with a selling price of $1,000 on account to Mrs.Jorgensen,with terms 2/10,n/30.On December 3,Mrs.Jorgensen returned merchandise with a selling price of $500.Mrs.Jorgensen paid the amount due on December 19.What journal entry did Macy Company prepare on December 19?
A) Debit Cash for $500 and credit Sales Revenue for $500.
B) Debit Cash for $500 and credit Accounts Receivable for $500.
C) Debit Cash for $490,debit Sales Discounts for $10 and credit Accounts Receivable for $500.
D) Debit Sales Revenue for $490 and credit Cash for $490.
Correct Answer:
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