Answer:
The debit in the journal entry to record the sale is of Accounts receivable debited by $24990
Step-by-step explanation:
The net method assumes that every customer will avail the cash discount and pay within the discount terms. Thus, under the net method, the sale is recorded at discounted price. Th entry under net method will be,
Accounts receivable $24990 Dr
Sales revenue $24990 Cr
The sale of $25500 is recorded after deducting the discount. The after discount or net value of sale is:
Net value of sale = 25500 * 0.98 = $24990