Answered: Cash 12028 Sales Discounts 372…

Business

Accounting

Cash 12028 Sales Discounts 372 Inventory 12400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Tamarisk, Inc. receives a payment on account from Pronghorn Industries. Based on the original sale of $12400 using the periodic inventory approach, Tamarisk, Inc. honors the 3% cash discount and records the payment. Which of the following is the correct entry for Tamarisk, Inc. to record?

Cash
12028
Sales Discounts
372
Inventory
12400
Accounts Receivable
12400
Cash
8228
Purchase Discounts
172
Cash
12028
Sales Discounts
372
Accounts Receivable
12400
Cash
12028
Purchase Discounts
372
Accounts Payable
12400

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