Chapter 5 -- Homework: Exercise 1 -- Credit Sales Transactions: a. On 9/1 Year 7 SALES of $10,000 of merchandise is made on credit (i.e., ACCOUNTS RECEIVABLE). The COST OF GOODS SOLD (i.e., the cost of INVENTORY sold) was $6,000. The terms of the sale are 2/10, net 30. Phrase Account Category Affect Dr. or Cr. 1st: A L SE R E contra - Dr Cr 2nd: A L SE R E contra - Dr Cr 3rd: A L SE R E contra - Dr Cr 4th: A L SE R E contra - Dr Cr Accounts Debit Credit b. On 9/10 Year 7 $8,000 of ACCOUNTS RECEIVABLE is collected in CASH, less the 2% SALES DISCOUNT. Phrase Account Category Affect Dr. or Cr. 1st: A L SE R E contra - Dr Cr 2nd: A L SE R E contra - Dr Cr 3rd: A L SE R E contra - Dr Cr Accounts Debit Credit