Harvey's Wholesale Company sold supplies of $46,000 to Northeast Company on April 12 of the current year, with terms 1/15, n/60. Harvey uses the net method of accounting for cash discounts. What entry would Harvey's make on April 12?

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Harvey's Wholesale Company uses the net method of accounting for cash discounts, which means they record sales and receivables net of the cash discount. The terms 1/15, n/60 offer a 1% discount if paid within 15 days. Therefore, the sale is recorded at $46,000 less 1% ($460), which equals $45,540.

Harvey's Wholesale Company Sold Supplies of $46,000 to Northeast Company Accounts receivable 46,000 Sales 46,000\begin{array}{|c|r|r|}\hline \text { Accounts receivable } & 46,000 & \\\hline \text { Sales } & & 46,000 \\\hline\end{array} Accounts receivable Sales ​46,000​46,000​​

Harvey's Wholesale Company Sold Supplies of $46,000 to Northeast Company $\begin{array}{|c|r|r|}\hline \text { Accounts receivable } & 46,000 & \\\hline \text { Sales } & & 46,000 \\\hline\end{array}$