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Sandlot Inc. sold baseballs for a total selling price of $2,000. The sale was made on account. The terms of the sale are 7/30, n/120.
Sandlot Inc. sold baseballs for a total selling price of $2,000. The sale was made on account. The terms of the sale are 7/30, n/120. When Sandlot Inc. recorded this credit sale, Sandlot Inc. debited Accounts Receivable for $2,000. Assume that Sandlot Inc. collects the cash 25 days after the sale. Which ONE of the following is included in the journal entry Sandlot Inc. must make to record the receipt of cash after 25 days? Note: We are NOT recording the original sale; instead, we are recording the subsequent collection of cash on account. CREDIT to Accounts Receivable for $1,860 DEBIT to Cash for $1,860 CREDIT to Cash for $1,860 DEBIT to Accounts Receivable for $1,860 DEBIT to Accounts Receivable for $2,000 DEBIT to Cash for $2,000 CREDIT to Cash for $2,000
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