Q.20

Swifty Company sells merchandise on account for $3100 to Cullumber Company with credit terms of 1/10,n/30. Cullumber Company returns $400 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Swifty Company make upon receipt of the check? Cash 2673 Sales Returns and Allowances 400 Sales Discounts 27 Accounts Receivable 3100 Cash 2673 Sales Returns and Allowances 427 Accounts Receivable 3100 Cash 3069 Sales Discounts 31 Sales Returns and 400 Allowances Accounts Receivable 2700 Cash 2700 Accounts Receivable 2700