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On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the
On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system. Babson pays the invoice on March 17, and takes the appropriate discount. The journal entry that Klein makes on March 17 is:
Cash | 7,800 | |
Accounts receivable | 7,800 |
Cash | 4,500 | |
Accounts receivable | 4,500 |
Cash | 7,644 | |
Sales discounts | 156 | |
Accounts receivable | 7,800 |
Cash | 7,644 | |
Accounts receivable | 7,644 |
Cash | 4,410 | |
Sales discounts | 90 | |
Accounts receivable | 4,500 |
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