Merchandise was sold on credit for $3,000,terms 1/10,n/30.The correct entry to record the cash collection should be:
A) Debit Cash,$3,000,and credit Accounts Receivable,$3,000,if collected within the discount period.
B) Debit Cash,$3,000,and credit Accounts Receivable,$2,970,and Sales Discount,$30,if collected within the discount period.
C) Debit Cash,$3,000,and credit Accounts Receivable,$2,970,and Sales Discount,$30,if collected after the discount period.
D) Debit Cash,$3,000,and credit Accounts Receivable,$3,000,if collected after the discount period.
E) Sales Discounts is 1% discount ($3,000*.01 = $30) will be debited when payment is received within the discounted period.If payment is received after the discount period,the gross sales amount ($3,000) is collected.
Correct Answer:
Verified
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