Sue’s Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the payment would include a
A. credit to Cash for $625.00.

B. credit to Cash for $662.50.

C. credit to Accounts Receivable for $625.00.

D. credit to Accounts Receivable for $662.50.

Question

Sue’s Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the payment would include a
A. credit to Cash for $625.00.
	
B. credit to Cash for $662.50.
	
C. credit to Accounts Receivable for $625.00.
	
D. credit to Accounts Receivable for $662.50.

anwaarullah · Answer

25*25= 625
625*1.06=662.5

anwaarullah · Answer

and its Account receivables, on credit so option D is correct