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On February 3, Smart Company sold merchandise in the amount of $5,800 to Truman Company, with credit terms of 2/10, n/30. The cost of the
On February 3, Smart Company sold merchandise in the amount of $5,800 to Truman Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Smart uses the perpetual inventory system. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:
a | Cash 3,920 Sales Discounts. 80 Accounts Receivable 4,000 |
b | Cash 4,000 Accounts Receivable 4,000 |
c | Cash 5,800 Accounts Receivable 5,800 |
d | Cash 5,684 Sales Discounts 116 Accounts Receivable 5,800 |
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