merchandise with a sales price of $10,000 is sold on account with terms 2/10, n/30. the entry to journalize…

merchandise with a sales price of $10,000 is sold on account with terms 2/10, n/30. the entry to journalize the sale under the net method would include a\na. debit to customer refunds payable for $200\nb. credit to sales for $9,800\nc. debit to cash for $10,000\nd. debit to accounts receivable for $10,000

merchandise with a sales price of $10,000 is sold on account with terms 2/10, n/30. the entry to journalize the sale under the net method would include a\na. debit to customer refunds payable for $200\nb. credit to sales for $9,800\nc. debit to cash for $10,000\nd. debit to accounts receivable for $10,000

Answer

Brief Explanations:

Under the net - method of accounting for sales discounts, sales are recorded at the net amount (less the discount) assuming the customer will take the discount. The terms 2/10, n/30 mean a 2% discount if paid within 10 days, otherwise the full amount is due in 30 days. The net amount of the sale is $10,000\times(1 - 0.02)=$9,800. Accounts Receivable is debited and Sales is credited for this net amount.

Answer:

B. credit to Sales for $9,800