Spruce Company purchased $8,250 of merchandise on October1 with terms 1/10, n/30. On October 3 it returned $1,250 worth of merchandise. On October 10 Spruce paid the full amount due. The amount of the discount Spruce recorded was::

A. $70.00

B. $1.25

C. $700.00

D. $12.50

On February 3, Smart Company sold merchandise in the amount of $5,800 to Truman Company, with credit terms of 2/10, n30. The cost of the items sold is $4,000. The journal entry to record the sale includes:

A. Debit to Accounts Payable for $5,800.

B. Debit to Accounts Receivable for $4,000.

C. Debit to Accounts Receivable for $5,800.

D. Debit to Sales of $4,000.

On February 3, Smart Company sold merchandise in the amount of $5,800 to Truman Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. The journal entry to record the sale includes a:

A. debit Cost of Goods Sold $4,000, credit Merchandise Inventory $4,000.

B. debit Sales $4,000, credit Merchandise Inventory $4,000.

C. debit Merchandise Inventory $5,800, credit Cost of Goods Sold $5,800.

D. Debit Accounts Receivable $4,000, credit Cost of Goods Sold $4,000.

On February 3, Smart Company sold merchandise in the amount of $5,800 to Truman Company with credit terms of 2/10,n/30. The cost of the items sold is $4,000. Truman pays the invoice on February 8 and takes the appropriate discount. The journal entry Smart records on February 8 is:

A. Debit Cash $5,800, credit Accounts Payable $5,800.

B. Debit Cash $4,000, Accounts Receivable $4,000.

C. Debit Cash $3,920, credit Sales Discount $80, credit Accounts Receivable $4,000.

D. Debit Cash $5,684, debit Sales Discount $116, credit Accounts Receivable $5,800