The entry to record the receipt of payment within the discount period on a sale of $4000 with terms of 2/10, n/30 will include a credit to O Accounts Receivable for $4000. O Sales Discounts for $80. O Cash for $3920. O Sales Revenue for $4000.

The entry to record the receipt of payment within the discount period on a sale of $4000 with terms of 2/10, n/30 will include a credit to O Accounts Receivable for $4000. O Sales Discounts for $80. O Cash for $3920. O Sales Revenue for $4000.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 2QY: What is the entry to record the cash received on a sale of 500, credit terms 1/15, n/30, if the...

See similar textbooks

Related questions

Q: Ivanhoe Company was organized on April 1, 2026, by Helen Martin. Helen is a good manager but a poor…

A: Income Statement- The Income Statement is the element of a financial statement, which used to report…

Q: Douglas Company's beginning inventory and purchases during the fiscal year ended December 31, 20--,…

A: FIFO method is one of the methods of inventory valuation in which it is assumed that old purchases…

Q: Grover Incorporated uses the allowance method to account for uncollectible accounts expense. Grover…

A: The accounting equation states that assets are equal to the sum of the liabilities and equity. The…

Q: The Converting Department of Toren Company had 1,040 units in work in process at the beginning of…

A: EQUIVALENT UNITS OF PRODUCTION Equivalent Production is represents the production of a process in…

Q: The following data have been extracted from the records of Puzzle Incorporated: February 9,600 $…

A: The costs incurred for the production are classified as fixed and variable costs. The fixed costs…

Q: Part Glass Steal frame Rubber insulation Glass Unlimited Part Reflective glass Aluminum frame Resale…

A: Revenue retrieval or recovery refers to the process of recovering lost or uncollected revenue. This…

Q: Load the wooldridge package in your R script using the library function: library (wooldridge) Load…

A: The objective of the question is to perform various operations on the 'wage2' dataset from the…

Q: Crane Company, a ski tuning and repair shop, opened on November 1, 2024. The company carefully kept…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: The terms of an invoice are 3/10, n/30 E.O.M. The invoice date is April 10. The last date on which…

A: Purchase discount is the amount of deduction allowed by seller on the amount of purchases made by…

Q: Prime Products hopes to borrow $87,000 on April 1 and repay it plus interest of $1,220 on June 30.…

A: Cash Budget: Cash Budget is a schedule to record cash inflows and outflows over a period with a view…

Q: es Nighthawk Steel, a manufacturer of specialized tools, has $5,450,000 in assets. Temporary current…

A: The earnings after taxes is used by the company to determine the actual profitability.Given in the…

Q: is added evenly throughout each process. Direct materials are added at the beginning of the first…

A: The conversion cost is the cost which is incurred in converting the raw materials into finished…

Q: Barbara is single and owns a home in the city, which is her primary residence. She also owns a…

A: The Alternative Minimum Tax (AMT) is a tax system in the United States that requires certain…

Q: Respond to the following in a discussion post: Define a balanced scorecard. Discuss at least three…

A: The objective of this question is to define what a balanced scorecard is and to identify at least…

Q: Regular Company produces audio equipment, specifically headphones and speakers. A new CEO has just…

A: Manufacturing overhead is the indirect costs that are incurred during the manufacturing process,…

Q: On July 1, 2015, a company paid an $16,200 premium on a 36-month insurance policy for coverage…

A: The prepaid expenses are the expenses that are incurred in advance but not yet due for payment.…

Q: Witter House is a calendar-year firm with 350 million common shares outstanding throughout 2024 and…

A: Earnings per share (EPS) is a financial metric that indicates the amount of a company's net income…

Q: During 2012, Young Company had the following transactions: a. Cash dividends of $10,000 were paid.…

A: An accounting worksheet is a document used within the accounting department to analyze and model…

Q: On January 1, 2025, a machine was purchased for $1,040,000 by Metlock Co. The machine is expected to…

A: For Metlock Co., the income before income tax on the lease for 2025 is calculated by determining the…

Q: On July 1, 2024, Gupta Corporation bought 25% of the outstanding common stock of VB Company for $116…

A: Equity Method: Genrally the equity method requires an investor to record its investment initially at…

Q: Required information RWP7-1 (Algo) Great Adventures Continuing Case [The following information…

A: The objective of the question is to record the expenditures related to the vehicle on July 1, 2025.…

Q: Fashion trends are increasingly driven by runway fashions rather than consumer behavior. True False

A: Runway fashion refers to the clothing and accessories that are showcased by models on a runway or…

Q: A project has estimated annual net cash flows of $57, 600. It is estimated to cost $288,000.…

A: The objective of the question is to calculate the cash payback period for a project. The cash…

Q: Exercise 6-22A (Algo) Scarce resource decision (Appendix) LO 6-7 Sweet Taste has the capacity to…

A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…

Q: i need solution

A: The objective of the question is to determine which location is the least costly for Stemway Company…

Q: Required information Exercise 19 - 3 (Algo) Income statement under absorption costing and variable…

A: The objective of the question is to prepare an income statement for Cool Sky's first year of…

Q: Exeter Division of Wetherby Labs acquired an asset with a cost of $800,000 and a four-year life. The…

A: In the historical cost approach, the Return on Investment (ROI) for each year is calculated based on…

Q: Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Munabhai

A: The objective of the question is to calculate the amount of bad debt expense for the period using…

Q: Income statements for Puppy Daycare Company for Year 3 and Year 4 follow: Items Sales Cost of goods…

A: The objective of the question is to perform a horizontal and vertical analysis of the income…

Q: Albany Division is considering the acquisition of a new asset that will cost $540,000 and have a…

A: ROI is calculated by dividing net operating income by average operating assets. Residual income is…

Q: Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based…

A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring…

Q: Which of the following accurately describes tax considerations for nonprofit organizations? a)…

A: The question is asking about the tax considerations for nonprofit organizations. Nonprofit…

Q: Model N 800 XL Model N 500 Activity Cost Pool Machine setups Special processing General factory…

A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The unit…

Q: A surgery center specializes in high-risk cardiovascular surgery. The center needs to forecast its…

A: It has been given in the question that the collection from the patients is only 25% of the billings…

Q: What is Jennifer's qualified business income deduction?

A: Qualified Business Income Deduction allowed = 20% of Qualified Business Income + 20%of DividendAs…

Q: Records at the Farnsworth Corporation contained the following data for the most recent period of…

A: Direct costs are the expenses that are directly used for the production of goods and services for…

Q: 1. 2. 3. 5. 5. 7. 3. 9 Common Stock. Discount on Bonds Payable. Treasury Stock (at cost). Notes…

A: The balance sheet is a statement that summarizes the entity's financial situation as of any given…

Q: The purpose of an audit is to A. provide financial statement users with an opinion by an…

A: The purpose of an audit is to provide an independent assessment of the fairness and accuracy of the…

Q: Comparative figures for Apple and Google follow. Apple Current Year One Year Prior $ 4,106 $ 3,956…

A: An inventory turnover ratio is the analysis through which a company determines how many times the…

Q: Shimmer Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The…

A: Cash collection budget:— This budget is prepared to estimate the collection of sales from customers…

Q: Benton Corporation manufactures computer microphones, which come in two models: Standard and…

A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The…

Q: 1) What are the five steps to apply the core principles of revenue recognition, list them? What new…

A: As per the Honor code of Bartleby we are bound to give the answer to the first question only, Please…

Q: Financial information is presented below: Operating Expenses $56000 Sales Revenue Cost of Goods Sold…

A: 104,000Explanation:Sales Revenue 238,000.00 Cost of Goods Sold (134,000.00)Gross Profit…

Q: Exercise 3-2 (Algo) Prepare T-Accounts [LO3-2, LO3-4] Jurvin Enterprises is a manufacturing company…

A: The direct costs are debited to the work in process account. The indirect costs are debited to…

Q: Rosie Malone sold her house to D.M. Band. The contract was signed on June 1, 2023, and closing was…

A: To prorate the monthly mortgage payment between the seller (Rosie Malone) and the buyer (D.M. Band)…

Q: Hestia (age 17) is claimed as a dependent by her parents, Rhea and Chronus. In 2022, Hestia received…

A: Taxable Income: It implies the total amount that is earned by an individual or a business after…

Q: elated Information: ease term enthly lease payments. conomic life of asset terest rate charged by…

A: A short-term lease, also known as an operating lease, is a lease agreement that is typically for a…

Q: Use the following information to calculate the predetermined factory overhead rate that would be…

A: The predetermined factory overhead rate for utility costs would be $15 per machine…

Q: D1, D2, and D3 are partners whose capital balances are P250,000, 150,000, and P125,000 respectively…

A: Partnership :A partnership is an arrangement between two or more persons whereby they agree to…

Question

The entry to record the receipt of payment within the discount period on a sale of $4000 with terms of 2/10, n/30 will include a credit
to
O Accounts Receivable for $4000.
O Sales Discounts for $80.
O Cash for $3920.
O Sales Revenue for $4000.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introducing Discounting Period

VIEW

Step 2: Working for Preperation of Journal Entry

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What is the entry to record the cash received on a sale of 500, credit terms 1/15, n/30, if the payment is received within the discount period? a. Accounts Receivable 500 DR; Cash 500 CR b. Cash 500 DR; Accounts Receivable 500 CR c. Cash 495 DR, Sales Discount 5 DR; Accounts Receivable 500 CR d. Accounts Receivable 500 DR; Cash 495 CR, Sales Discount 5 CR e. Cash 500 DR; Sales Discount 5 CR, Accounts Receivable 495 CR
Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
Sold goods for $650, credit terms net 30 days. Which journal would the company use to record this transaction? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300. Shipping charges are $100. The terms of the sale are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the seller record for these transactions?
If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the inventory for a full refund, and received an allowance for $65, how much discount would be applied if the customer remitted payment within the discount window?
The debits and credits for four related entries for a sale of 15,000, terms 1/10, n/30, are presented in the following T accounts. Describe each transaction.
A buyer purchases $250 worth of goods on credit from a seller. Shipping charges are $50. The terms of the purchase are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the buyer record for these transactions?
A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays within the discount window, how much will they remit in cash to the retailer? A. $1,250 B. $1,200 C. $50 D. $500
The entry to record the receipt of payment within the discount period on a sale of $1500 with terms of 1/10, n/30 will include a credit to Cash for $1485. Accounts Receivable for $1500. ● Sales Revenue for $1500. ● Sales Discounts for $15.
The journal entry to record the receipt of a payment from customer within the discount period on a sale of $2325 with terms of 3/10, n/30 will include a credit to O a. Sales discounts for $70 O b. Accounts receivable for $2325 O c. Sales Revenue for $2325 O d. Cash for $2255
The entry to record the receipt of payment within the discount period on a sale of $2400 with terms of 2/8, n/30 will include a ANSWER: credit to accounts receivable for $2400 Explain why this is the answer
The entry to record a payment on a $690 account within the 2% discount period would include a: A. debit to Accounts Payable for $676. B. debit to Purchases for $676. C. debit to Accounts Payable for $690. D. debit to Cash for $690.