Puzzle Company sold merchandise on credit with a list price of $75,000. Terms were 3/10, n/30. Which of the following entries correctly applies the indicated method to record the sale? A Net Price Method Accounts Receivable 75,000 Sales 75,000 B Gross Price Method Accounts Receivable 72,750 Sales 72,750 C Gross Price Method Accounts Receivable 72,000 Sales 72,000 D Net Price Method Accounts Receivable 72,750 Sales 72,750
Puzzle Company sold merchandise on credit with a list price of $75,000. Terms were 3/10, n/30. Which of the following entries correctly applies the indicated method to record the sale? A Net Price Method Accounts Receivable 75,000 Sales 75,000 B Gross Price Method Accounts Receivable 72,750 Sales 72,750 C Gross Price Method Accounts Receivable 72,000 Sales 72,000 D Net Price Method Accounts Receivable 72,750 Sales 72,750
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Puzzle Company sold merchandise on credit with a list price of $75,000. Terms were 3/10, n/30. Which of the following entries correctly applies the indicated method to record the sale?
A
Net Price Method | |||
75,000 | |||
Sales | 75,000 |
B
Gross Price Method | |||
Accounts Receivable | 72,750 | ||
Sales | 72,750 |
C
Gross Price Method | |||
Accounts Receivable | 72,000 | ||
Sales | 72,000 |
D
Net Price Method | |||
Accounts Receivable | 72,750 | ||
Sales | 72,750 |
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