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Argyle Corp. uses the gross method or recording sales discounts. Assume that Fitzgerald, Inc. made a $12,000 purchase with terms of 2/10, n/30. When it
Argyle Corp. uses the gross method or recording sales discounts. Assume that Fitzgerald, Inc. made a $12,000 purchase with terms of 2/10, n/30. When it pays in the discount period, what is the correct journal entry?
a.
| Accounts ReceivableFitzgerald, Inc. | 11,760 | ||
| Cash | 11,760 |
b.
| Accounts ReceivableFitzgerald, Inc. | 12,000 | ||
| Cash | 11,760 | ||
| Sales | 240 |
c.
| Cash | 11,760 | ||
| Accounts ReceivableFitzgerald, Inc. | 11,760 |
d.
| Cash | 11,760 | ||
| Sales | 240 | ||
| Accounts ReceivableFitzgerald, Inc. | 12,000 |
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