On October 12, Equipment Incorporated sells $53,000 worth of equipment on account to a credit customer with credit terms of 1/10, n/30. Assume the sale is not subject to tax. Select the correct entry to record the sale on October 12. Multiple Choice Account Name Debit Credit Accounts Receivable 53,000 Sales 53,000 Account Name Debit Credit Accounts Receivable 53,000 Sales Discounts 530 Sales 52,470 Account Name Debit Credit Cash 53,000 Sales 53,000 Account Name Debit Credit Sales 53,000 Sales Discounts 530 Accounts Receivable 52,470
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
On October 12, Equipment Incorporated sells $53,000 worth of equipment on account to a credit customer with credit terms of 1/10, n/30. Assume the sale is not subject to tax. Select the correct entry to record the sale on October 12.
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Account Name Debit Credit Accounts Receivable 53,000 Sales 53,000 -
Account Name Debit Credit Accounts Receivable 53,000 Sales Discounts 530 Sales 52,470 -
Account Name Debit Credit Cash 53,000 Sales 53,000 -
Account Name Debit Credit Sales 53,000 Sales Discounts 530 Accounts Receivable 52,470
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