91 D A B C ABC Co sold goods with a list price of $4,500 to Black which was subject to trade discount of 5% and early settlement discount of 4% if the invoice was paid within 7 days. The normal credit period available to credit customers is 30 days from invoice date. At the point of sale, Black was expected to take advantage of the early settlement terms offered. If, on this occasion, Black did not pay within 7 days and was not eligible for the settlement discount, what accounting entries should be made by ABC Co to record settlement of the amount outstanding? Debit Cash $4,104, Debit Revenue $396 and Credit Trade receivables $4,500 Debit Cash $4,275, Debit Discount received $171 and Credit Trade receivables $4,104 Debit Cash $4,275 and Credit Trade receivables $4,275 Debit Cash $4,275, Credit Trade receivables $4,104 and Credit Revenue $171

91 D A B C ABC Co sold goods with a list price of $4,500 to Black which was subject to trade discount of 5% and early settlement discount of 4% if the invoice was paid within 7 days. The normal credit period available to credit customers is 30 days from invoice date. At the point of sale, Black was expected to take advantage of the early settlement terms offered. If, on this occasion, Black did not pay within 7 days and was not eligible for the settlement discount, what accounting entries should be made by ABC Co to record settlement of the amount outstanding? Debit Cash $4,104, Debit Revenue $396 and Credit Trade receivables $4,500 Debit Cash $4,275, Debit Discount received $171 and Credit Trade receivables $4,104 Debit Cash $4,275 and Credit Trade receivables $4,275 Debit Cash $4,275, Credit Trade receivables $4,104 and Credit Revenue $171

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 15EA: Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise....

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