Forever Jewelers uses the perpetual inventory system. On April 2, Forever sold merchandise with a cost of $5,000 for $10,000 to a customer on account with terms of 1/15, n/30. Which of the following journal entries correctly records the payment received from the customer on April 29?

A.

Cash	9,900
Accounts Receivable		9,900

B.

Cash	10,000
Accounts Receivable		9,900
Sales Discounts Forfeited		100

C.

Cash	9,900
Sales Discounts Forfeited	100
Accounts Receivable		10,000

D.

Cash	10,000
Accounts Receivable		10,000

Jackson's Antiques uses the perpetual inventory system. On June 15, Jackson's sold merchandise with a cost of $15,000 for $18,500 to a customer on account with terms of 2/10, n/30. Which of the following journal entries correctly records the payment received from the customer on June 21?

A.

Cash	18,130
Sales Discounts Forfeited	370
Accounts Receivable		18,500

B.

Cash	18,130
Accounts Receivable		18,130

C.

Cash	18,500
Accounts Receivable		370
Sales Discounts Forfeited		18,130

D.

Cash	18,500
Accounts Receivable		18,500

In a closing entry, any balance in Income Summary (assuming a net income) is closed out by:

A.

debiting Common Stock

B.

crediting Retained Earnings

C.

crediting Common Stock

D.

debiting Retained Earnings