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Olympia Company sold merchandise on credit with a list price of $60,000. Terms were 2/10, n/30. Given the indicated sales discounts methods in the responses, which entry is correct? a. Gross Price Method Accounts Receivable                   54,000         Sales                                                 54,000 b. Net Price Method Accounts Receivable                   30,000        Sales                                                  30,000 c. Net Priced Method Accounts Receivable                   58,800        Sales                                                  58,800 d. Gross Price Method Accounts Receivable                    58,800       Sales                                                   58,800

Olympia Company sold merchandise on credit with a list price of $60,000. Terms were 2/10, n/30. Given the indicated sales discounts methods in the responses, which entry is correct? a. Gross Price Method Accounts Receivable                   54,000         Sales                                                 54,000 b. Net Price Method Accounts Receivable                   30,000        Sales                                                  30,000 c. Net Priced Method Accounts Receivable                   58,800        Sales                                                  58,800 d. Gross Price Method Accounts Receivable                    58,800       Sales                                                   58,800

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Olympia Company sold merchandise on credit with a list price of $60,000. Terms were 2/10, n/30. Given the indicated sales discounts methods in the responses, which entry is correct?

a. Gross Price Method

Accounts Receivable                   54,000

        Sales                                                 54,000

b. Net Price Method

Accounts Receivable                   30,000

       Sales                                                  30,000

c. Net Priced Method

Accounts Receivable                   58,800

       Sales                                                  58,800

d. Gross Price Method

Accounts Receivable                    58,800

      Sales                                                   58,800

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