Question

The journal entry to record the receipt of a payment within the discount period on a sale of $900 with terms of 2/10, n/30 will include a

Answer 1

Answer and Explanation:

Given that

The Sale is made for $900

Terms 2/10, n/30 that means if the payment is made within 10 days than 2% discount is eligible and the total credit period allowed is 30 days

Now the journal entry to record the receipts of a payment within discount period is

Cash Dr $882

Sales discount $18

To Account receivable $900

(Being the cash received)