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Recognizing AR On May 10, 2020, ZAR Company sold merchandise to a customer for $4,000 terms 2/15, n/30. On May 12, the customer returned merchandise

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Recognizing AR On May 10, 2020, ZAR Company sold merchandise to a customer for $4,000 terms 2/15, n/30. On May 12, the customer returned merchandise to the company valued $500 and on May 25 paid the full amount to the company. The entry of May 10 transaction in the books of the company, will include a Debit of Accounts Receivable $4,000 Debit of Sales Discount $80 O Credit of Service Revenue $4,000 O All of the options The return of merchandise by the customer will Increase the amount of accounts receivable recorded on the customer Decrease the amount of accounts receivable recorded on the customer Increase the amount of accounts payable recorded on the customer O None of the options The full amount the customer paid on May 25 to the company is * O $3,500 O $3,920 O $4,000 O None of the options The discount amount earned on this sale is $80 O $70 O $60 O No Discount

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