on september 14, 2022, sampson company sells merchandise valued at $24,000 on account to pacifica inc. with…

on september 14, 2022, sampson company sells merchandise valued at $24,000 on account to pacifica inc. with terms 3/10, n/30. both sampson and pacifica use the periodic inventory system. pacifica remits payment to sampson on september 23. sampsons entry on that date is: cash 23,280 a sales discounts 720 accounts receivable 24,000 cash 23,280 b sales discounts 720 accounts payable 24,000 cash 23,280 c sales discounts 720 accounts payable 24,000 accounts receivable 24,000 d cash 23,680 purchase discounts 320

on september 14, 2022, sampson company sells merchandise valued at $24,000 on account to pacifica inc. with terms 3/10, n/30. both sampson and pacifica use the periodic inventory system. pacifica remits payment to sampson on september 23. sampsons entry on that date is: cash 23,280 a sales discounts 720 accounts receivable 24,000 cash 23,280 b sales discounts 720 accounts payable 24,000 cash 23,280 c sales discounts 720 accounts payable 24,000 accounts receivable 24,000 d cash 23,680 purchase discounts 320

Answer

Explanation:

Step1: Understand the sales - discount terms

The terms 3/10, n/30 mean a 3% discount if paid within 10 days, and the net amount is due within 30 days. Pacifica pays on September 23, which is within 10 days of September 14.

Step2: Calculate the sales discount amount

The sales amount is $24,000. The sales - discount rate is 3%. So the sales - discount amount is $24,000×0.03 = $720.

Step3: Calculate the cash received

The cash received is the sales amount minus the sales - discount amount. So, $24,000−$720=$23,280.

Step4: Determine the journal - entry accounts

Sampson is the seller. When receiving payment, Cash is debited for the amount received ($23,280), Sales Discounts is debited for the discount amount ($720), and Accounts Receivable is credited for the original amount of the sale ($24,000).

Answer:

A. Cash 23,280, Sales Discounts 720, Accounts Receivable 24,000