22. Olympia Company sold merchandise on credit with a list price of $60,000. Ter
ID: 2561566 • Letter: 2
Question
22. Olympia Company sold merchandise on credit with a list price of $60,000. Terms were 2/10, n/30. Given the indicated sales discounts methods in the responses, which entry is correct?
a.
Gross Price Method
Accounts Receivable 54,000
Sales 54,000
b.
Net Price Method
Accounts Receivable 30,000
Sales 30,000
c.
Net Price Method
Accounts Receivable 58,800
Sales 58,800
d.
Gross Price Method
Accounts Receivable 58,8000
Sales 58,800
a.
Gross Price Method
Accounts Receivable 54,000
Sales 54,000
b.
Net Price Method
Accounts Receivable 30,000
Sales 30,000
c.
Net Price Method
Accounts Receivable 58,800
Sales 58,800
d.
Gross Price Method
Accounts Receivable 58,8000
Sales 58,800
Explanation / Answer
Answer is C
Net Price Method
General Journal Debit Credit Accounts Receivable($60,000 × 0.98) $58,800 Sales $58,800Related Questions
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