On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts.
What is the correct entry for Flores on November 10? How did you get the answer.
A.) Accounts receivable...........................7,840
Sales..................................................7,840
B.) Accounts receivable...........................8,000
Sales..................................................8,000
C.) Accounts receivable...........................7,840
Cash discounts.......................................160
Sales.................................................8,000
D.) Accounts receivable...........................8,000
Cash discounts.......................................160
Sales.................................................7,840