Inventory that cost $500 is sold for $700, with terms of 2/10, n/30. Give the journal entries

Question:

Inventory that cost $500 is sold for $700, with terms of 2/10, n/30. Give the journal entries to record

(a) The sale of merchandise

(b) Collection of the accounts receivable assuming that it occurs during the discount period. (Use the method shown in the chapter for recording sales discounts.)

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...