Question
On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 210/210 , n30/n30 . Flores uses
On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 210/210 , n30/n30 . Flores uses the gross method of accounting for sales discounts.
What is the correct entry for Flores on December 5, assuming the correct payment was received on that date?
Multiple Choice
| Account Title | Debit | Credit |
|---|---|---|
| Cash | 8,000 | |
| Accounts receivable | 8,000 |
| Account Title | Debit | Credit |
|---|---|---|
| Cash | 8,160 | |
| Accounts receivable | 8,000 | |
| Sales discounts forfeited | 160 |
| Account Title | Debit | Credit |
|---|---|---|
| Cash | 8,000 | |
| Accounts receivable | 7,840 | |
| Interest revenue | 160 |
| Account Title | Debit | Credit |
|---|---|---|
| Cash | 8,000 | |
| Accounts receivable | 7,840 | |
| Sales discounts revenue | 160 |
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Introduction to Governmental and Not for Profit Accounting
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton
7th edition
9780132776073, 132776014, 978-0132776011
