Question
On July 22, Peter sold $23,500 of inventory items on credit with the terms 2/15, net 30. Payment on $15,000 sales was received on August
On July 22, Peter sold $23,500 of inventory items on credit with the terms 2/15, net 30. Payment on $15,000 sales was received on August 1 and the remaining payment was received on August 12. Assuming Peter uses the gross method of accounting for sales discounts, which one of the following entries was made on August 1 to record the cash received? a. Cash.................................................................... 14,700 Sales Discount...................................................... 300 Accounts Receivable..................................... 15,000 b. Cash.................................................................... 15,000 Accounts Receivable..................................... 15,000 c. Cash.................................................................... 14,700 Accounts Receivable..................................... 14,700 d. Accounts Receivable............................................. 300 Sales Discount Forfeited................................ 300
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