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 $50

Answer 1

The answer is C.

Step-by-step explanation:

It is because the payment has already been made, so it is a sale, and not accounts receivable.

Answer 2

The answer to your question is letter D. Debit Cash $490, debits Sales Discount $10; Credit Accounts Receivable $500.