On April 2, Kelvin sold $35000 of inventory items on credit with the terms 2/10, net 30. Payment on $21000 sales was received on April 8 and the remaining payment on $14000 sales was received on April 27. Assuming Kelvin uses the net method of accounting for sales discounts, the entry recorded on April 27 would include a: O debit to Cash and credit to Accounts Receivable for $13720. O debit to Cash and credit to Sales Discounts Forfeited for $700. O debit to Accounts Receivable and credit to Sales Revenue for $35000. debit to Cash for $14000 and credit to Sales Discounts Forfeited for $280.

On April 2, Kelvin sold $35000 of inventory items on credit with the terms 2/10, net 30. Payment on $21000 sales was received on April 8 and the remaining payment on $14000 sales was received on April 27. Assuming Kelvin uses the net method of accounting for sales discounts, the entry recorded on April 27 would include a: O debit to Cash and credit to Accounts Receivable for $13720. O debit to Cash and credit to Sales Discounts Forfeited for $700. O debit to Accounts Receivable and credit to Sales Revenue for $35000. debit to Cash for $14000 and credit to Sales Discounts Forfeited for $280.

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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