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Oswego Clay Pipe Company sold $46,100 of pipe to Southeast Water District #45 on April 12 of the current year with terms 4/15, n/60. Oswego
Oswego Clay Pipe Company sold $46,100 of pipe to Southeast Water District #45 on April 12 of the current year with terms 4/15, n/60. Oswego uses the gross method of accounting for sales discounts.
What entry would Oswego make on April 23, assuming the customer made the correct payment on that date?
Multiple Choice
- Cash44,256Sales discounts1,844Accounts receivable46,100
- Cash46,100Sales discounts1,844Accounts receivable46,100Sales discounts forfeited1,844
- Cash44,256Sales1,844Accounts receivable46,100
- Cash46,100Accounts receivable44,256Sales1,844
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