A company sold merchandise for $23,000 on account with terms of 4/15, n/30. The

Question

A company sold merchandise for $23,000 on account with terms of 4/15, 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 the sale if the payment is received within 10 days of the invoice date would include O A. O B. O C. O D. a debit to Sales Revenue for $23,000, a credit to Accounts Receivable for $21,000, and a credit to Sales Discounts for $2,000 a debit to Cash for $21,000, a debit to Merchandise Inventory for $2,000, and a credit to Accounts Receivable for $23,000 a debit to Cash for $21,000, a credit to Merchandise Inventory for $840, and a credit to Sales Revenue for $20,160 a debit to Cash for $20,160, a debit to Sales Discount for $840, and a credit to Accounts Receivable for $21,000

Explanation / Answer

Journal entry :

So answer is d) a debit to cash for $20160, a debit to sales discount for $840 and a credit to account receivable for $21000

Date accounts & explanation debit credit Cash (21000*96%) 20160 Sales discount 840 Account receivable 21000

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