A merchandiser using the gross method sold goods on account to Customer A for $8,000 with terms of 2/10,n/30.If the payment is received within the discount period,Accounts Receivable is decreased by $7,800.

Question

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Using the gross method,the entry to record the receipt would debit Cash for $7.800,debit Sales Discounts for $200,and credit Accounts Receivable for $8,000.

A Merchandiser Using the Gross Method Sold Goods on Account