The entry to record the receipt of payment within the discount period on a sale of $900 with terms of 2/10, n/30 will include a
A)credit to Sales Discounts for $18.
B)debit to Sales Revenue for $882.
C)credit to Accounts Receivable for $900.
D)credit to Sales Revenue for $900.

Question

Quizplus · Accepted Answer

The entry will include a credit to Accounts Receivable for the full amount of $900, as this is the original amount owed by the customer. The discount of $18 (2% of $900) will be recorded separately as a debit to Sales Discounts.

The Entry to Record the Receipt of Payment Within the Discount