Answer:
March 12
Dr. Account receivable $9,700
Cr. Sales $9,700
March 20
Dr. Cash $9,506
Dr. Sales Discount $194
Cr. Account receivable $9,700
Explanation:
Term 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale and net credit period of 30 days.
According to given data
Sales = $9,700
As the payment is made within discount period, so discount will be availed
Discount = $9,700 x 2% = $194
Payment = $9,700 - $194 = $9,506
Discount of $194 is an expense.
