Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On February 3, Smart Company sold merchandise in the amount of $4,200 to Truman Company, with credit terms of 1/10, n/30. The cost of the
On February 3, Smart Company sold merchandise in the amount of $4,200 to Truman Company, with credit terms of 1/10, n/30. The cost of the items sold is $2,900. 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 | 2,900 | |
Accounts receivable | 2,900 |
b.
Cash | 4,200 | |
Accounts receivable | 4,200 |
c.
Cash | 4,120 | |
Sales discounts | 80 | |
Accounts receivable | 4,200 |
d.
Cash | 2,820 | |
Accounts receivable | 2,820 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started