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On May 11, 2021 White Company sold cleaning materials on account to Rainbow Company worth $30,000 terms 2/10,n/30. On May 14, 2021 Rainbow returns defective
On May 11, 2021 White Company sold cleaning materials on account to Rainbow Company worth $30,000 terms 2/10,n/30. On May 14, 2021 Rainbow returns defective materials to White for $4,000. On May 20, 2021 White Company receives payment from Rainbow for the balance due. On May 11, 2021 the record entry in the books of White Company will include: * O Debit Accounts Receivable and credit Sales Revenue for $30,000. Debit Sales Revenue and credit Accounts Receivable for $29,400. Debit Cash and credit Sales Revenue for $26,000. Debit Accounts Receivable and credit Sales Return and Allowance for $30,000. O None of the above On May 14, 2021 the record entry in the books of White Company will include: O Debit Sales Return and Allowance and credit Cash for $4,000. O Debit Sales Revenue and credit Accounts Receivable for $30,000, O Debit Sales Return and Allowance and credit Accounts Receivable for $4,000. O Debit Accounts Receivable and credit Cash for $26,000. O None of the above On May 20, 2021 White Company received from Rainbow Company a cash amount of: * $30,000 O $25,480 O $26,000 O $520 None of the above
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