The collection of a $800 account within the 2 percent discount period would result in a(n)
A)increase to Accounts Receivable for $784.
B)decrease to Cash for $784.
C)increase to Sales Discounts for $16.
D)decrease to Accounts Receivable for $784.

Question

Quizplus · Accepted Answer

When a customer pays within the discount period, the company records the discount as a Sales Discount, which is an increase in the Sales Discounts account by the discount amount, $16 in this case.

The Collection of a $800 Account Within the 2 Percent