1. Question Content Area

   Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 1/10, net 30, for $400. Pierce prepaid the $60 shipping charge. Which of the following entries does Pierce make to record this sale?

   a.Accounts Receivable-Stanton, debit $60; Sales, credit $60

   b.Accounts Receivable-Stanton, debit $396; Sales, credit $396, and Accounts Receivable-Stanton, debit $60; Cash, credit $60

   c.Accounts Receivable-Stanton, debit $460; Sales, credit $460

   d.Accounts Receivable-Stanton, debit $60; Sales, credit $60, and Transportation Out, debit $400; Cash, credit $400