QUESTION 36

1. Spilker made a sale to a customer on 8/1 for $73,000 with 2/10, n/30 credit terms. Spilker uses the gross method for accounting for sales discounts. The entry on 8/1 is:

   A.

   Accounts receivable	71,540
   Sales discounts	1,460
   Sales		73,000

   B.

   Accounts receivable	73,000
   Sales discounts		1,460
   Sales		71,540

   C.

   Accounts receivable	71,540
   Sales		71,540

   D.

   Accounts receivable	73,000
   Sales		73,000