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On February 3, Smart Company sold merchandise in the amount of $2,300 to Kennedy Company, with credit terms of 2/10, n/30. The cost of the
On February 3, Smart Company sold merchandise in the amount of $2,300 to Kennedy Company, with credit terms of 2/10, n/30. The cost of the items sold is $1,590. Smart uses the perpetual inventory system and the gross method. Kennedy pays the invoice on February 8 and takes the appropriate discount. The journal entry that Smart makes on February 8 is: Multiple Choice Account Title Debit Credit Cash Accounts Receivable 1,590 Account Title Accounts Receivable Account Title Accounts Receivable Account Title Accounts Receivable. Account Title Accounts Receivable Cash Cash Sales discounts Cash Cash Sales discounts 1,590 Debit 2,300 Debit 2,220 32 Debit 1,510 Debit 2,254 46 Credit 2,300 Credit 2,252 Credit 1,510 Credit 2,300
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