Merchandise costing $1,500 is sold for $2,000 on terms 2/10, n/30. If the buyer pays within the

Question:

Merchandise costing $1,500 is sold for $2,000 on terms 2/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales and as gross profit?
Using this information, prepare the journal entries needed at the time of sale and collection, assuming the company uses a perpetual inventory system.