On April 1, Pro Company received a cheque from Carter Company for payment of an invoice dated
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Question:
- On April 1, Pro Company received a cheque from Carter Company for payment of an invoice dated March 24 for $3,000 with credit terms of 2/10 n/30. On March 28, Carter returned $200 of the merchandise because it was defective.
- How would this transaction be recorded in Pro's cash receipts journal if payment is made on April 15?
- A. debit Cash $2,800; credit Accounts Receivable—Carter Company $3,000 and Sales Discounts $56.
- B. debit Cash $2,800; credit Accounts Receivable—Carter Company $3,000.
- C debit Cash $2,800; credit Accounts Receivable—Carter Company $2,800.
- D. debit Accounts Receivable—Carter Company $3,000; credit Cash $2,744 and Sales Discounts.
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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