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XYZ Company sells $1,000 merchandise to customer on account with terms 2/10, net 30. The journal entry that XYZ would record at the receipt of
XYZ Company sells $1,000 merchandise to customer on account with terms 2/10, net 30. The journal entry that XYZ would record at the receipt of payment if the customer pays after the discount period is: 1. Debit Cash $980, credit accounts receivable $980 2. Debit Cash $1,000, credit sales discounts for $20 and Accounts receivable for $1,000 3. Debit Cash $980, debit sales discounts for $20 and credit Accounts receivable for $1,000 4. Debit Accounts Receivable, credit sales revenue 3980 5. Debit Cash, credit Accounts Receivable $1,000
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