2144 On February 3, Smart Company sold merchandise in the amount of $2,200 to Truman Company, with credit terms of 3/10, r/30. The cost of the items sold is $1,520. 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 Cash Account Title Accounts Receivable Account Title Cash Sales discounts Accounts Receivable Account Title Cash Sales discounts 6 Debit 2,200 Debit 2,134 Debit 2,120 46 Credit 2,200 Credit 2,200 Credit
2144 On February 3, Smart Company sold merchandise in the amount of $2,200 to Truman Company, with credit terms of 3/10, r/30. The cost of the items sold is $1,520. 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 Cash Account Title Accounts Receivable Account Title Cash Sales discounts Accounts Receivable Account Title Cash Sales discounts 6 Debit 2,200 Debit 2,134 Debit 2,120 46 Credit 2,200 Credit 2,200 Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2144
On February 3, Smart Company sold merchandise in the amount of $2,200 to Truman Company, with credit terms of 3/10, r/30. The cost of the items sold
is $1,520. 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
Cash
Account Title
Accounts Receivable
Account Title
Cash
Sales discounts
Accounts Receivable
Account Title
Cash
Sales discounts
6
Debit
2,200
Debit
2,134
66
Debit
2,120
46
Credit
2,200
Credit
2,200
Credit
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