Respuesta :
Answer:
A) debit to Accounts Receivable for $9,300
Explanation:
The journal entry to record the sale should be:
XX, YY, merchandise sold on account, credit terms 2/10, n/30
Dr Accounts receivable 9,300
Cr Sales revenue 9,300
Credit terms 2/10, n/30 means that if the customer pays within the discount term (10 days) they will get a 2% discount. If the customer pays after the discount term and before 30 days, they have to pay the full invoice price.
Answer:
The correct answer is Option A.
Explanation:
The appropriate entries that would be recorded are, regardless of the discounts offered:
Debit Accounts receivable $9,300
Credit Sales revenue $9,300
(To record sales transaction)
The above journals hold until the discount is established. The cash discount terms of 2/10, n/30 means 2% cash discount if paid within 10 days of the credit sale and net 30 means payment of full invoice within 30 days. The essence of the 2% cash discount is to encourage early payment of credit sale.