Question
February 1, Adams Company sold merchandise on credit with a list price of $8,400. Terms were 3/15, n/45. Which of the following entries correctly applies
February 1, Adams Company sold merchandise on credit with a list price of $8,400. Terms were 3/15, n/45. Which of the following entries correctly applies the indicated method to receive the appropriate customer payment on February 1?
a.Gross Method
Accounts Receivable 8,400 Sales Revenue 8,400b.Gross Method
Cash 8,400 Accounts Receivable 8,400c.Net Method
Cash 8,148 Accounts Receivable 8,148 d.
Net Method Cash 8,148 Sales Discount 252 Accounts Receivable 8,400
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Accounting Business Reporting For Decision Making
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, David Bond
7th Edition
0730369323, 9780730369325
