. A journal entry with a debit to cash of $980, a debit to Sales Discounts of $20, and a credit to Accounts Receivable of $1,000 means that a customer has taken a 2% cash discount for early payment. What could Sales of $550,000 and net sales of $523,000 reflect? (Not looking just for a $ amount here but also why is there a difference, what does the difference mean.)

. A journal entry with a debit to cash of $980, a debit to Sales Discounts of $20, and a credit to Accounts Receivable of $1,000 means that a customer has taken a 2% cash discount for early payment. What could Sales of $550,000 and net sales of $523,000 reflect? (Not looking just for a $ amount here but also why is there a difference, what does the difference mean.)

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 2QY: What is the entry to record the cash received on a sale of 500, credit terms 1/15, n/30, if the...

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