On November 10 of the current year, Cherokee Industries sold materials to a customer for $8,000 with credit terms 2/10, n/30. Cherokee uses the net method of accounting for cash discounts. What entry would Cherokee make on November 17, assuming the correct payment was received on that date?

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Since Cherokee Industries uses the net method of accounting for cash discounts, the initial sale would have been recorded at the net amount (assuming the discount would be taken). Therefore, when the payment is received within the discount period, the payment is recorded at the net amount, which is $8,000 less 2% discount ($160), resulting in a cash receipt of $7,840. There's no need to record a sales discount since the sale was initially recorded at the net amount.

On November 10 of the Current Year, Cherokee Industries Sold Cash 7,840 Accounts receivable 7,840\begin{array}{|l|r|r|}\hline \text { Cash } & 7,840 & \\\hline \text { Accounts receivable } & & 7,840 \\\hline\end{array} Cash Accounts receivable ​7,840​7,840​​

On November 10 of the Current Year, Cherokee Industries Sold $\begin{array}{|l|r|r|}\hline \text { Cash } & 7,840 & \\\hline \text { Accounts receivable } & & 7,840 \\\hline\end{array}$