Lee Enterprises received payment within the discount period from a customer who had purchased goods on credit.The sales invoice was for $2 000 and credit terms were 3/15 n/30.Ignore GST.In the cash receipts journal,$1 940 will appear in the:

Question

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Since the customer paid within the discount period, they received a 3% discount of $2,000 x 0.03 = $60. Therefore, they only had to pay $2,000 - $60 = $1,940. This amount will be recorded in the cash receipts journal in the cash debit column, as Lee Enterprises received cash. It will not be recorded in the accounts receivable debit column, as the customer has already paid. It will also not be recorded in the sales revenue credit column, as this column is used to record credit sales, not cash receipts.

Lee Enterprises Received Payment Within the Discount Period from a Customer