Question

Merchandise is sold on account on January 16, terms 2/10, n/30, and recorded by debiting Accounts Receivable and crediting Sales for $2,000. If payment occurs on January 21, the journal entry would include: Group of answer choices

Answer 1

Credit to Accounts Receivable for $2,000

Step-by-step explanation:

Preparation of the Journal entry

Based on the information given we were told that the Merchandise sold have a terms of 2/10, n/30, which is been recorded by debiting Accounts Receivable as well as crediting Sales for the amount of $2,000 which means that If the payment occurs on January 21 the Journal entry would include Debit to Accounts Receivable for $2,000

Dr Cash 1,960

(2,000-40)

Dr Discount on bills receivable 40

(2,000*2%)

Cr Accounts receivable 2,000