A company records the following journal entry: debit Cash $1,470, debit Sales Discounts $30, and credit Accounts Receivable $1,500. This means that the customer has taken what percentage cash discount for early payment?
A)1%
B)2%
C)5%
D)10%
E)15%

Question

Quizplus · Accepted Answer

The sales discount is $30 on an accounts receivable of $1,500. The percentage discount is calculated as ($30 / $1,500) * 100% = 2%.

A Company Records the Following Journal Entry: Debit Cash $1,470