The appropriate entry with a compound journal entry is a debit to Cash Discounts arising from the customer paying within the discount window.
For instance, the receipt may be recorded by Bill's Auto Repair as follows:
- Debit Cash $1,000
- Debit Cash Discounts $50
- Credit Accounts Receivable $1,050
What is a compound journal entry?
A compound journal entry involves more than one debit and more than one credit. it combines several journal entries. In this case, the customer could have paid $1,050 including Cash Discounts (of $50) allowed to the customer.
Thus, the appropriate entry for a compound journal entry may involve an entry for cash discounts.
Learn more about compound journal entries at https://brainly.com/question/17201601
