Question:

Journalize the following merchandise transactions:

1. Sold merchandise on account, $9,200 with terms 2/10, n/30. The cost of the merchandise sold was $6,875
2. Received payment less the discount.

Indicate debits and credits.

What I had answered:

Sale of merchandise

Dr Accounts receivable $9,200

Cr Sales Revenue $9,200

Dr Inventory $6,875

Cr COGS $6,875

What my teacher said was wrong:

Part 1: The debit and credit accounts are correct, but the amount is incorrect. Remember, 2/10 n/30 indicates a discount on the original purchase price.

Part 2: The debit and credit accounts are incorrect, as well as the amount

Please provide correct answer.

Thank you!