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A company sold merchandise for $24,000 on account with terms of 5/15, n/30. The company uses a perpetual inventory system. After two days, it received
A company sold merchandise for $24,000 on account with terms of 5/15, n/30. The company uses a perpetual inventory system. After two days, it received defective merchandise worth $4,000. The journal entry to record the cash receipt for the sale if the payment is received within 10 days of the invoice date would include _____. A. a debit to cash for $20,000, a credit to Merchandise Inventory for $1,000, and a credit to Sales Revenue for $19,000 B. a debit to Cash for $19,000, a debit to Sales Discount far $1,000, and a credit to Accounts Receivable for $20,000 C. a debit to cash far $20,000, a debit to Merchandise Inventory for $4,000, and a credit to Accounts Receivable for $24,000 D. a debit to Sales Revenue $24,000, a credit to Accounts Receivable for $20,000, and a credit to Sales Discounts for $4,000
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