Part II

7. Holt Company sells merchandise on account for $4,000 to Jones Company with credit terms of 2/10, n/30. Jones Company returns $500 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?

8. The collection of a $10500 account after the 2 percent discount period will result in a credit to:

9. The collection of a $600 account after the 2 percent discount period will result in a

a. debit to Cash for $588.

b. credit to Accounts Receivable for $600.

c. credit to Cash for $600.

d. debit to Sales Discounts for $12.