A merchandiser received payment in full after the expiration of the discount period on a $3,000 sales invoice, terms 3/15 n/30. The journal entry would include a:
A)debit to Cash for $2,910.
B)credit to Accounts Receivable for $2,910.
C)debit to Sales Discount of $90.
D)debit to Cash for $3,000.

Question

Quizplus · Accepted Answer

The correct journal entry for receiving payment after the expiration of the discount period is to debit Cash for the full invoice amount, $3,000, since no discount applies.

A Merchandiser Received Payment in Full After the Expiration of the Discount