21. On July 9, Sheb Company sells goods on credit to Wooley Company for $3,000, terms 1/10, n/60. Sheb receives payment on July 18. The entry by Sheb on July 18 is: A) Cash 3,000 Accounts Receivable 3,000 B) Cash 3,000 Sales Discounts 30 Accounts Receivable 2.970 C) Cash 2,970 Sales Discounts Accounts Receivable 3,000 D) Cash 3,030 Cash 30 Accounts Receivable 3,000 30 22. A credit memorandum is used as documentation for a journal entry that requires a debit A) Sales Revenue and a credit to Cash. B) Sales Returns and Allowances and a credit to Accounts Receivable. C) Accounts Receivable and a credit to a contra-revenue account. D) Cash and a credit to Sales Returns and Allowances. 23. As an incentive for customers to pay their accounts promptly, a business may offer its customers A) a sales discount. B) free delivery. C) a sales allowance. D) a sales return. 24. If a company has net sales of $700,000 and cost of goods sold of $490,000, the gross profit percentage is A) 15%. B) 30%. C) 70%. D) 100%