A company sold merchandise for $1,000 on account with terms of 2/15,n/30.The company uses a perpetual inventory system.Defective merchandise of $200 was returned two days later.If the payment was received after 30 days,the journal entry to record the cash receipt will include ________.

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The customer is entitled to a 2% discount because they paid within 15 days, which would leave a balance of $800 ($1,000 - $200 returned - 2% discount). The journal entry to record the cash receipt would be a debit to Cash for $800 and a credit to Accounts Receivable for $800.

A Company Sold Merchandise for $1,000 on Account with Terms