Answer:
July 1, 2020
Dr. Account Receivable $56,000
Cr. Sales $56,000
July 9, 2020
Dr. Cash $54,880
Dr. Sales Discount $1,120
Cr. Account Receivable $56,000
Step-by-step explanation:
Credit terms of 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.
As Payment of $56,000 is received within the discount period. So, the discount will be
Discount = $56,000 x 2% = $1,120
Amount Paid = $56,000 - $1,120 = $54,880