Question
On April 2, Kelvin sold $34000 of inventory items on credit with the terms 1/10, net 30. Payment on $20400 sales was received on April
On April 2, Kelvin sold $34000 of inventory items on credit with the terms 1/10, net 30. Payment on $20400 sales was received on April 8 and the remaining payment on $13600 sales was received on April 27. Assuming Kelvin uses the net method of accounting for sales discounts, the entry recorded on April 27 would include a:
debit to Cash and credit to Accounts Receivable for $13464.
debit to Accounts Receivable and credit to Sales Revenue for $34000.
debit to Cash and credit to Sales Discounts Forfeited for $340.
debit to Cash for $13600 and credit to Sales Discounts Forfeited for $136.
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