On November 10 of the current year, Cherokee Industries sold materials to a customer for $8,000 with credit terms 2/10 /30. Cherokee uses the net method of accounting for sales discounts.. What entry would Cherokee make on December 10, assuming the correct payment was received on that date? Multiple Choice Cash Accounts receivable Discounts revenue Cash Account Title Cash Accounts receivable Sales discounts forfeited Account Title Cash Account Title Accounts receivable. Sales discounts forfeited Account Title Accounts receivable. Debit 8,000 Debit 8,000 Debit 8,160 Debit 8,000 Credit 7,840 160 Credit 7,840 160 Credit 8,000 160 Credit 8,000
On November 10 of the current year, Cherokee Industries sold materials to a customer for $8,000 with credit terms 2/10 /30. Cherokee uses the net method of accounting for sales discounts.. What entry would Cherokee make on December 10, assuming the correct payment was received on that date? Multiple Choice Cash Accounts receivable Discounts revenue Cash Account Title Cash Accounts receivable Sales discounts forfeited Account Title Cash Account Title Accounts receivable. Sales discounts forfeited Account Title Accounts receivable. Debit 8,000 Debit 8,000 Debit 8,160 Debit 8,000 Credit 7,840 160 Credit 7,840 160 Credit 8,000 160 Credit 8,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On November 10 of the current year, Cherokee Industries sold materials to a customer
for $8,000 with credit terms 2/10 /30. Cherokee uses the net method of
accounting for sales discounts.
What entry would Cherokee make on December 10, assuming the correct payment
was received on that date?
Multiple Choice
Cash
Accounts receivable
Discounts revenue
Cash
Account Title
Cash
Accounts receivable
Sales discounts forfeited
Account Title
Cash
Account Title
Accounts receivable
Sales discounts forfeited
Account Title
Accounts receivable.
Debit
8,000
Debit
8,000
Debit
8,160
Debit
8,000
Credit
7,840
160
Credit
7,840
160
Credit
8,000
160
Credit
8,000
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