On May 1, 2020, ABC Corporation sells $250,000 of merchandise on account. The payment terms...
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Accounting
On May 1, 2020, ABC Corporation sells $250,000 of merchandise on account. The payment terms are 3/10, n/30. If the customer pays on May 11, ABC's journal entry on that date will:
a.
Debit cash for $242,500 and credit Sales revenue for $242,500.
b.
Debit sales discounts for $7,500 and credit accounts receivable for $250,000.
c.
Debit cash for $242,500 and credit Sales discounts for $7,500.
d.
Debit loss on accounts receivable for $7,500 and credit accounts receivable for $250,000.
On May 1, 2020, ABC Corporation sells $250,000 of merchandise on account. The payment terms are 3/10, n/30. If the customer pays on May 11, ABC's journal entry on that date will:
| a. | Debit cash for $242,500 and credit Sales revenue for $242,500. |
| b. | Debit sales discounts for $7,500 and credit accounts receivable for $250,000. |
| c. | Debit cash for $242,500 and credit Sales discounts for $7,500. |
| d. | Debit loss on accounts receivable for $7,500 and credit accounts receivable for $250,000. |
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