9) Leno Company sells goods to the Fallon Company for $10,000. It offers credit

Question

9) Leno Company sells goods to the Fallon Company for $10,000. It offers credit terms of 2/10, n/30. If Fallon Company pays the invoice within the discount period, Leno Company will record a debit to Cash in the amount of: $10,000 Comment: B) $9,800. C) $200. D) $10,200. 60) Michelin Jewelers completed the following transactions. Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold $9,000 of merchandise to a customer on account with terms of 3/15, n/30. Michelin's cost of the merchandise sold was $5,500. Which of the following journal entries correctly records the Sales revenue? Returns are not expected. A) Cash 9,000 Sales revenue 9,000 B) Accounts receivable Sales revenue 8,730 C) Sales revenue 9,000 Cost of goods sold 9,000 D) Sales revenue 8,730 Accounts receivable 8,730 Comment: 61) A company uses the perpetual inventory method. Which of the following entries would be made to record a purchase of inventory on account? entry would be a debit to Accounts payable and a credit to Inventory. ld he a dehit to Purchases and a credit to Accounts payable. A) The accounting

Explanation / Answer

9) Debit cash = 10000*98% = 9800

So answer is b) 9800

10) Journal entry :

So answer is b)

61) Journal entry :

The accounting entry would be debit to inventory and credit account payable

Date account and explanation debit credit Account receivable (9000*97%) 8730 Sales revenue 8730

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