A company sold merchandise for $20,000 on account with terms of 3/10, n/30. The

Question

A company sold merchandise for $20,000 on account with terms of 3/10, n/30. The company uses a perpetual inventory system. After two days, it received defective merchandise worth $2,000. The journal entry to record the cash receipt for sale if the payment is received within 10 days of the invoice date would include: O a debit to Cash for $17.460, a credit to Merchandise Inventory for $540, and a credit to Sales Revenue for $18,000. a debit to Cash for $17.460, a debit to Sales Discount for $540, and a credit to Accounts Receivable for $18,000. e debit to Cash for $18,000,a debit to Merchandise nventony tor $2,000and a credie to Accounts a debit to Cash for $18,000, a debit to Merchandise Inventory for $2,000 and a credit to Accounts Receivable a debit to Sales for $20,000, a credit to Accounts Receivable for $20.000 and a credit to Sales Discount for $2,000

Explanation / Answer

Journal entry :

so answer is b) a debit to cash for $17460, a debit to sales discount for $540 and a credit to account receivable for $18000

Date accounts & explanation debit credit Cash a/c (18000*97%) 17460 Sales discount a/c (18000*3%) 540      Account receivable a/c (20000-2000) 18000 (To record payment received)

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