Sales Discounts Accounts Receivable 25 2,500 A credit sale of $800 is made on Ap

Question

Sales Discounts Accounts Receivable 25 2,500 A credit sale of $800 is made on April 25, terms 2/10, n/30, on which a return of $50 is granted on April 28. What amount is received as payment in full on May 4? A) $735 B) $784 C) $800 5. D) $750 In a perpetual inventory system, the Cost of Goods Sold account is used A) Only when a cash sale of merchandise occurs B) Only when a credit sale of merchandise occurs C) Only when a sale of merchandise occurs D) Whenever there is a sale of merchandise or a return of merchandise sold 6.

Explanation / Answer

5. Answer is A

Sales value : $800

Return : $50

Balance due : $750

As the payment is done within 10 days, the customer is eligible for 2% discount.

Therefore, the payment due is $750 - 2% of $750 = 750 - 15 = $735

6. Answer is D

The cost of goods sold is to be accounted on every sale.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.