#21. A company sells merchandise for 1,000 on account with terms of 2/10, n/30.
ID: 2347533 • Letter: #
Question
#21. A company sells merchandise for 1,000 on account with terms of 2/10, n/30. Defective merchadise of $200 is returned 2 days later. Which of the following entries would be made to record the cash receipt for the sale if the payment is received within 10 days?A The accounting entry would be an $800 debit to Cash and an $800 credit to Accunts receivable.
B. be $800 debit to cash, a $16 credit t Sales dsicounts and a $784 cedit to accounts receivable.
C. be $16 debit to Sales discounts an $800 debit to Cash and an $816 credit to accunts receivable
D. be a $784 deit to cash, A $16 debit to Sales discounts and an $800 credit to accounts receivble.
Explanation / Answer
D. be a $784 deit to cash, A $16 debit to Sales discounts and an $800 credit to accounts receivble.
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