On March 2, Front Company sells goods for $25,000 to Moral Company on account, terms 4/10, n/30. On March 10, Moral returns defective goods that have a value of $3,000. On April 1, Moral pays the balance due to Front Company.

The journal entry on March 2 will include: *

Debit Cash 25,000 Credit Sales Revenue 25,000

Debit Account Payable 25,000 Credit Sales Revenue 25,000

Debit Account Receivable 25,000 Credit Sales Revenue 25,000

Debit Cash 25,000 Credit Account Receivable 25,000

None of the above

Sales discount is equal to: *

$ 1,000

$ 880

$ 10,000

$ 1,120

No sales discount

Cash paid on April 1 is equal to: *

$28,000

$25,000

$24,120

$22,000

None of the above