The collection of a $1,000 account paid within the 2 percent discount period will result in a
A)credit to Cash for $980.
B)credit to Accounts Receivable for $1,000.
C)debit to Cash for $1,000.
D)credit to Accounts Receivable for $980.

Question

Quizplus · Accepted Answer

When a $1,000 account is paid within the 2 percent discount period, the full amount of $1,000 is credited to Accounts Receivable to indicate that the account has been settled. The discount is accounted for separately.

The Collection of a $1,000 Account Paid Within the 2