Question

Monica’s Closet received payment in full for goods sold within the discount period on a $500 sales invoice, terms 2/10, n/30. Which entry records this payment?
A. Debit Accounts Receivable; credit Sales $500
B. Debit Cash; credit Accounts Receivable $500
C. Debit Cash $490, debit Sales Discount $10; credit Sales $500
D. Debit Cash $490, debit Sales Discount $10; credit Accounts Receivable $500

Answer 1

its not a

Answer 2

do you know what terms 2/10 n/30 means?

Answer 3

no

Answer 4

It means that if the bill is paid within 10 days, there is a 1% discount. Otherwise, the total amount is due within 30 days. For example, if "$1000 1/10 net 30" is written on a bill, the buyer can take a 1% discount ($1000 x .01 = $10) and make a payment of $990 within 10 days, or pay the entire $1000 within 30 days.

Answer 5

except in this case it would be a %2 discount

Answer 6

ok so it would be c or d

Answer 7

im thinking d

Answer 8

hold on a sec

Answer 9

im thinking you are correct :D

Answer 10

with d

Answer 11

ok thanks that was very helpfull

Answer 12

your welcome