On February 3, Smart Company sold merchandise in the amount of $4,800 to Truman Company, with credit terms of 1/10, n/30. The cost of the Items sold is $3,310. 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 3,310 Accounts receivable 3,310 Cash 4,800 Accounts receivable 4,800 Cash 4,720 Sales discounts 33 Accounts receivable 4,753 3,230 Cash 3,230 Accounts receivable

On February 3, Smart Company sold merchandise in the amount of $4,800 to Truman Company, with credit terms of 1/10, n/30. The cost of the Items sold is $3,310. 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 3,310 Accounts receivable 3,310 Cash 4,800 Accounts receivable 4,800 Cash 4,720 Sales discounts 33 Accounts receivable 4,753 3,230 Cash 3,230 Accounts receivable

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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Landon Jewelers uses the perpetual inventory system. On April 2, Landon sold merchandise with a cost of $4,500 for $9,000 to a customer on account with terms of 1/15, n/30. The journal entry to record the cost of goods sold would be: A. Cost of Goods Sold 4,500 Accounts Receivable 4,500 B. Cost of Goods Sold 4,500 Merchandise Inventory 4,500 C. Sales Revenue 4,500 Cost of Goods Sold 4,500 D. Merchandise Inventory 4,500 Cost of Goods Sold 4,500