Question: Question 8 You have been provided data on the transactions with clients below: Initial sale: units sold = 10,000 selling price = $ 50.00

Question 8 You have been provided data on the transactions with clients

Question 8 You have been provided data on the transactions with clients below: Initial sale: units sold = 10,000 selling price = $ 50.00 trade discount = 5% portion of sales immediately received in cash = 95% 20 days after sale: cash discount allowed = 10% What accounting entries are necessary to record discounts allowed to customers? Select all answers that apply (choose among the 5 answers available) DEBIT "trade discounts" account $25K DEBIT "discounts allowed" account $45,125 DEBIT "discounts allowed" account $25K CREDIT "accounts receivable" account $45,125 CREDIT "accounts receivable" account $25K

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