On February 3, Smart Company sold merchandise in the amount of $1,800 to Kennedy Company, with credit terms of 1/10, n/30. The cost of the items sold is $1,240. Smart uses the perpetual inventory system and the gross method. Kennedy pays the invoice on February 8 and takes the appropriate discount. The journal entry that Smart makes on February 8 is: Multiple Choice Account Title Debit Credit Cash 1,782 Sales discounts 18 Accounts Receivable 1,800

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On February 3, Smart Company sold merchandise in the amount of $1,800 to Kennedy Company, with credit terms of 1/10, n/30. The cost
of the items sold is $1,240. Smart uses the perpetual inventory system and the gross method. Kennedy pays the invoice on February 8
and takes the appropriate discount. The journal entry that Smart makes on February 8 is:
Multiple Choice
Account Title
Debit
Credit
Cash
1,782
Sales discounts
18
Accounts Receivable
1,800
Account Title
Debit
Credit
Cash
1,160
Accounts Receivable
1,160
Account Title
Debit
Credit
Cash
1,800
Accounts Receivable
1,800
Transcribed Image Text:On February 3, Smart Company sold merchandise in the amount of $1,800 to Kennedy Company, with credit terms of 1/10, n/30. The cost of the items sold is $1,240. Smart uses the perpetual inventory system and the gross method. Kennedy pays the invoice on February 8 and takes the appropriate discount. The journal entry that Smart makes on February 8 is: Multiple Choice Account Title Debit Credit Cash 1,782 Sales discounts 18 Accounts Receivable 1,800 Account Title Debit Credit Cash 1,160 Accounts Receivable 1,160 Account Title Debit Credit Cash 1,800 Accounts Receivable 1,800
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