Question
Consider the following short case as you respond to the next question: VLC Corporation sold merchandise with a cost of $200 on account for $300
Consider the following short case as you respond to the next question: VLC Corporation sold merchandise with a cost of $200 on account for $300 to PRT Corporation; credit terms were 2 / 10, n / 30. VLC paid the outgoing freight charge of $10. PRT paid the invoice within the discount period. The entries in VLCs accounting information system to record all the preceding events will include all of the following except:
A. Debit Accounts Receivable, $300. Credit Sales, $300.
B. Debit Cost of Goods Sold, $200. Credit Inventory, $200.
C. Debit Delivery Expense, $10. Credit Cash, $10.
D. Debit Cash, $294. Debit Inventory, $6. Credit Accounts Receivable, $300.
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