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#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.