8.

On 12th January 2018, Megamart company grants an allowance to a Max traders, a customer of RO 2,600 for the goods sold. Assume that the customer took 3% discount and record the journal entry for the cash payment of the allowance in the books of seller under periodic inventory system? a. Cash RO 2,600 Dr / Sales returns and allowances RO 2,600 Cr b. Account receivable RO 2,600 Dr / Sales discount RO 72 Cr / Cash RO 2,522 Cr c. Sales returns and allowances RO 2,600 Dr / Cash RO 2,600 Cr d. Sales returns and allowances RO 2,600 Dr /Sales discount RO 78 Cr / Cash 2,522 Cri