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On October 1, Robertson Company sold merchandise in the amount of $5,800 to Alberts, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Robertson uses the perpetual inventory system. Alberts pays the invoice on October 8 and takes the appropriate discount. The journal entry that Robertson makes on October is:

A. Cash 5,800
Accounts receivable 5,800

B. Cash 4,000
Accounts receivable 4,000

C. Cash 3,920
Sales Discounts 80
Accounts Receivable 4,000

D. Cash 5,684
Accounts receivable 5,684

E. Cash 5,684
Sales Discounts 116
Accounts Receivable 5,800

User Atxe
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1 Answer

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Final answer:

The journal entry that Robertson makes on October is Cash 3,920, Sales Discounts 80, Accounts Receivable 4,000. Therefore, the correct option is C.

Step-by-step explanation:

The correct journal entry that Robertson makes on October is:

C. Cash 3,920

Sales Discounts 80

Accounts Receivable 4,000

When Alberts pays the invoice on October 8 and takes the appropriate discount, Robertson will record the cash received along with the sales discounts granted. The cash amount will be $3,920 because the customer took advantage of the discount, and the remaining amount ($4,000) will be recorded as a reduction in the accounts receivable balance.

User AKASH WANGALWAR
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