Solved

On November 10 of the Current Year, Flores Mills Sold

Question 57

Multiple Choice

On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on December 5, assuming the correct payment was received on that date?


A)  Cash 8,000 Accounts receivable 7,840 Discounts revenue 160\begin{array}{|c|c|c|}\hline \text { Cash } & 8,000 & \\\hline \text { Accounts receivable } & & 7,840 \\\hline \text { Discounts revenue } & & 160 \\\hline\end{array}
B)  Cash 8,000 Accounts receivable 7,840 Interest revenue 160\begin{array}{|c|c|c|}\hline \text { Cash } & 8,000 & \\\hline \text { Accounts receivable } & & 7,840 \\\hline \text { Interest revenue } & & 160 \\\hline\end{array}
C)  Cash 8,160 Accounts receivable 8,000 Interest revenue 160\begin{array}{|c|c|c|}\hline \text { Cash } & 8,160 & \\\hline \text { Accounts receivable } & & 8,000 \\\hline \text { Interest revenue } & & 160 \\\hline\end{array}
D)  Cash 8,000 Accounts receivable 8,000\begin{array}{|c|c|c|}\hline \text { Cash } & 8,000 & \\\hline \text { Accounts receivable } & & 8,000 \\\hline\end{array}

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents