ABC Co sold goods on credit for 50,000 on 20 Feb 2021 to XYZ Co on...

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ABC Co sold goods on credit for 50,000 on 20 Feb 2021 to XYZ Co on terms 3/5; n/30. Ram Co. paid on 25 Feb 2021. Journal Entry to record this transaction on 25 Feb 2021 in the books of ABC Co is A. Debit Cash $48,500 credit discount $1,500 Credit AR (XYZ) $50,000 B. Debit Cash $48,500 debit discount $1,500 Credit AR (XYZ) $50,000 A Debit Cash $47,750 credit discount $1,250 Credit AR (XYZ) $50,000 D. Debit Cash $50,000 debit discount $0 Credit AR (XYZ) $50,000 ABC Co sold goods on credit for 50,000 on 20 Feb 2021 to XYZ Co on terms 3/5; n/30. Ram Co. paid on 25 Feb 2021. Journal Entry to record this transaction on 25 Feb 2021 in the books of ABC Co is A. Debit Cash $48,500 credit discount $1,500 Credit AR (XYZ) $50,000 B. Debit Cash $48,500 debit discount $1,500 Credit AR (XYZ) $50,000 A Debit Cash $47,750 credit discount $1,250 Credit AR (XYZ) $50,000 D. Debit Cash $50,000 debit discount $0 Credit AR (XYZ) $50,000

Answer rating: 100% (QA)

The correct option is B Debit Cash 48500 debit discount ... View the full answer