1. ( TRUE OR FALSE) On May 1, Petrano Company made a sale on account to Brown Company for $2,000, terms 1/10, n/30. Brown paid the amount due, less the discount, on May 9.the journal entry to record the receipt of cash on Petrano Company's books is debit Cash, $1,980, debit Sales Discounts, $20, and credit Accounts Receivable, $2,000.

2. The journal entry to record the purchase of merchandise on account for $2,750 with freight of $125 prepaid and added to the invoice is:

A. debit Purchases $2,750, debit Freight In $125; credit Accounts Payable $2,875.

B. debit Accounts Receivable $2,875; credit Sales $2,875.

C. debit Accounts Payable $2,875, debit Freight in $125; credit Purchases $2,750.

D. debit Purchases $2,750; credit Accounts Payable $2,750.

3. ( True or false): On May 1, Ronaldo Company sold merchandise to Green Company in the amount of $2,000, plus 8% sales tax. the journal entry to record the sale on Ronaldo Company's books is debit Accounts Receivable, $2,160, credit Sales, $2,160.

4. On Deck Sports Memorabilia store sells a Babe Ruth rookie card for $4,000 on account. If the sales tax on the sale is 8%, what is the amount debited to Accounts Receivable.

A. $4,320

B. $4,000

C. $3,992

D. $3,680