Question

Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% sales tax. Terms of the sale were 2/10, n/30. Which entry is required to record this payment?

A. Debit Cash $954; credit Sales $954
B. Debit Cash $936; credit Sales $936
C. Debit Cash $936; debit Sales Discount $18; credit Accounts Receivable $954
D. Debit Cash $900; credit Accounts Receivable Sales $900

Answer 1

The answer is correct for which entry is required to record the payment for Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% sales tax. Terms of the sale were 2/10, n/30 is C. Debit Cash $936; debit Sales Discount $18; credit Accounts Receivable $954. 

Answer 2

The answer to your question is letter C. Debit Cash $936; debit Sales Discounts $18; credit Accounts Receivable $954.