On April 2, George Company sold $46000 of inventory items on credit with the terms 2/10, net 30. Payment on $27600 sales was received on April 8 and the remaining payment on $18400 sales was received on April 27. Assuming George uses the net method of accounting for sales discounts, the entry recorded on April 27 would include a: debit to Cash for $18400, credit to Accounts Receivable for $18032 and credit to Sales Discounts Forfeited for $368. debit to Cash and credit to Sales Discounts Forfeited for $920. O debit to Cash and credit to Accounts Receivable for $18032. O debit to Accounts Receivable and credit to Sales Revenue for $46000.
On April 2, George Company sold $46000 of inventory items on credit with the terms 2/10, net 30. Payment on $27600 sales was received on April 8 and the remaining payment on $18400 sales was received on April 27. Assuming George uses the net method of accounting for sales discounts, the entry recorded on April 27 would include a: debit to Cash for $18400, credit to Accounts Receivable for $18032 and credit to Sales Discounts Forfeited for $368. debit to Cash and credit to Sales Discounts Forfeited for $920. O debit to Cash and credit to Accounts Receivable for $18032. O debit to Accounts Receivable and credit to Sales Revenue for $46000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
sd
Transcribed Image Text:On April 2, George Company sold $46000 of inventory items on credit with the terms 2/10, net 30. Payment on $27600 sales was
received on April 8 and the remaining payment on $18400 sales was received on April 27. Assuming George uses the net method of
accounting for sales discounts, the entry recorded on April 27 would include a:
debit to Cash for $18400, credit to Accounts Receivable for $18032 and credit to Sales Discounts Forfeited for $368.
debit to Cash and credit to Sales Discounts Forfeited for $920.
debit to Cash and credit to Accounts Receivable for $18032.
debit to Accounts Receivable and credit to Sales Revenue for $46000.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education