ax Company uses a cash receipts journal. The company is a wholesaler of textiles and does not charges sales tax, makes no bank credit card sales, and offers a 1% cash discount to customers who pay 1020 days before the due date of the invoice. On September 1, Jax Company received payment of the monthly rent of $2,500 from L. Mitchell for the rental of office space on the third floor of the building that Jax Company owns. How would this transaction be recorded in the cash receipts journal?

a.Debit Cash for $2,475, debit Sales Discounts for $25, and credit Accounts Receivable for $2,500

b.Debit Cash for $2,500 and credit Accounts Receivable for $2,500

c.Debit Cash for $2,500 and credit General for $2,500

d.Debit Cash for $2,500 and credit Sales for $2,500

DD Company uses a purchases journal to record all purchases on account, including merchandise purchases. The company purchases merchandise and office supplies on a frequent basis. On April 10, DD Company purchased merchandise on account from CC Company for $3,200, terms 2/10, n/30. How would this transaction be recorded in the purchases journal of DD Company?

a.Debit Accounts Payable for $3,200 and credit Merchandise Purchases for $3,200

b.Debit Merchandise Purchases for $3,136 and credit Accounts Payable for $3,136

c.Debit Merchandise Purchases for $3,200 and credit Accounts Payable for $3,200

d.Debit Other Accounts for $3,200 and credit Cash for $3,200