Final answer:
The company will debit Sales Discounts for $24 and Cash for $776 on the date of payment within the discount period; option c) is correct for the given transaction.
Step-by-step explanation:
When a company sells goods on account for $800 with terms 3/10, n/30, it means the customer can take a 3% discount if they pay within 10 days; otherwise, the net amount is due within 30 days. If the customer pays within the discount period, they would pay $800 less 3% of $800, which is $24. Therefore, they pay $776. On the date of payment, the accounting entries would be to debit the Cash account for $776, debit Sales Discounts for $24, and credit Accounts Receivable for $800.
With these transactions, option a) is incorrect because Accounts Receivable is credited, not debited. Option b) is partly correct, but the amount should be $776 instead of $800. Option c) is correct because Sales Discounts is debited for $24, representing the discount given to the customer. Option d) is incorrect because Sales Revenue would have already been credited on the date of the sale, not the payment, hence it does not get debited when the payment is received.