Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company sold merchandise for $20,000 on account with terms of 3/10, n/30. The company uses a perpetual inventory system. After two days, it received

image text in transcribed

A company sold merchandise for $20,000 on account with terms of 3/10, n/30. The company uses a perpetual inventory system. After two days, it received defective merchandise worth $2,000. The journal entry to record the cash receipt for sale if the payment is received within 10 days of the invoice date would include: O a debit to Cash for $17.460, a credit to Merchandise Inventory for $540, and a credit to Sales Revenue for $18,000. a debit to Cash for $17.460, a debit to Sales Discount for $540, and a credit to Accounts Receivable for $18,000. e debit to Cash for $18,000,a debit to Merchandise nventony tor $2,000and a credie to Accounts a debit to Cash for $18,000, a debit to Merchandise Inventory for $2,000 and a credit to Accounts Receivable a debit to Sales for $20,000, a credit to Accounts Receivable for $20.000 and a credit to Sales Discount for $2,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting For Managerial Planning Decision Making And Control

Authors: Andrew Schiff, Hsihui Chang, Woody M Liao, James L Boockholdt

5th Edition

0759340412, 978-0759340411

More Books

Students also viewed these Accounting questions

Question

How do rituals and routines express organizational values?

Answered: 1 week ago