The entry to record the receipt of payment within the discount period on a sale of $700 with terms of 2/10, n/30 will include a
A) credit to Sales Discounts for $14.
B) debit to Sales Revenue for $686.
C) credit to Accounts Receivable for $700.
D) credit to Sales Revenue for $700.

Question

Quizplus · Accepted Answer

The entry will include a credit to Accounts Receivable for the full amount of $700, as this is the original amount owed before the discount.

The Entry to Record the Receipt of Payment Within the Discount