21.

1. A sales invoice included the following information: merchandise price, $9,400; terms 1/10, n/eom, FOB shipping point with prepaid freight of $600 added to the invoice. Assuming that a credit for merchandise returned of $1,000 is granted prior to payment and the invoice is paid within the discount period, what is the amount of cash that should be received by the seller?

   a.$10,896

   b.$8,916

   c.$990

   d.$9,906

20.

Merchandise is sold for cash. The selling price of the merchandise is $3,200 and the sale is subject to a 8% state sales tax. The journal entry to record the sale would include a credit to

a.Sales Tax Payable for $256

b.Sales for $2,944

c.Cash for $3,200

d.Sales for $3,456

19.

1. Pierce Company sold merchandise to Stanton Company on account FOB shipping point, 1/10, net 30, for $8,800. Pierce prepaid the $260 shipping charge. Which of the following entries does Pierce make to record this sale?

   a.Accounts ReceivableStanton, debit $8,712; Sales, credit $8,712, and Accounts ReceivableStanton, debit $260; Cash, credit $260

   b.Accounts ReceivableStanton, debit $9,060; Sales, credit $9,060

   c.Accounts ReceivableStanton, debit $8,800; Sales, credit $8,800, and Delivery Expense, debit $260; Cash, credit $260

   d.Accounts ReceivableStanton, debit $8,800; Sales, credit $8,800