When a credit sale is made with terms of 2/10, n/30 on May 10 and the customer's check is received on May 19, which of the following is true about the May 19 journal entry? a. There will be a debit to sales discounts on May 10 b. The debit to cash will be less than the credit to accounts receivable on May 19 There will be a credit to sales discounts on May 19 d. The debit to cash will equal the credit to accounts receivable because the discount was recorded on May 10 QUESTION 30 Garvin Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $150,000 Credit sales. $450,000 Selling and administrative expenses, 5110,000 Sales returns and allowances, $30,000 Gross profit, $490,000 Accounts receivable, $110,000 Sales discounts, $14,000 Allowance for doubtful accounts credit balance, $1,200 Garvin prepares an aging of accounts receivable and the result shows that 5% of accounts receivable is estimated to be uncollectible. How much is bad debt expense? a $5,500 b. 54,300 54,240 d. $6.700 QUESTION 31 Which of the following correctly describes the effects of accruing income tax expense at year-end? a. Liabilities are not affected b. A cash payment is made to pay the taxes due c. Net Income increases d. Retained earnings decreases