Question: multiple choice, choose one correct answer. On February 3, Smart Company sold merchandise in the amount of $2,400 to Truman Company, with credit terms of

On February 3, Smart Company sold merchandise in the amount of $2,400 to Truman Company, with credit terms of 110, n/30. The cost of the items sold is $1,650. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The Journal entry that Smart makes on February 8 is: Multiple Choice O cash 1.650 Accounts receivable 1.650 o 2,400 Cash Accounts receivable 2,400 Cash sales discounts Accounts receivable O Cash 1,5701 1,650 Cash Accounts receivable 1,650 Cash 2,400 Accounts receivable 2,400 2,320 Cash Sales discounts Accounts receivable 17 2,337 Cash Accounts receivable 1,570 1,570 I Cash Sales discounts Accounts receivable 2,376 24 2,400
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