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On November 10 of the current year, Cherokee Industries sold materials to a customer for $8,000 with credit terms 2/10,n/30. Cherokee uses the net method
On November 10 of the current year, Cherokee Industries sold materials to a customer for $8,000 with credit terms 2/10,n/30. Cherokee uses the net method of accounting for sales discounts. What entry would Cherokee make on December 10 , assuming the correct payment was received on that date? \begin{tabular}{|c|c|c|} \hline Account Title & Debit & Credit \\ \hline Cash & 8,000 & \\ \hline Accounts receivable & & 8,000 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|c|}{ Account Title } & Debit & Credit \\ \hline Cash & 8,000 & \\ \hline Accounts receivable & & 7,840 \\ \hline Discounts revenue & & 160 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|c|}{ Account Title } & Debit & Credit \\ \hline Cash & 8,160 & \\ \hline Accounts receivable & & 8,000 \\ \hline Sales discounts forfeited & & 160 \\ \hline \end{tabular} \begin{tabular}{|c|r|r|} \hline \multicolumn{1}{|c|}{ Account Title } & Debit & Credit \\ \hline Cash & 8,000 & \\ \hline Accounts receivable & & 7,840 \\ \hline Sales discounts forfeited & & 160 \\ \hline \end{tabular}
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