Use the following to answer the four questions below On January 17, 2022, Seller Company sold to Buyer Company merchandise having a sale price of $2,000 with terms 4/10, n/30, FOB shipping point. On January 26, Seller Company received a check for the balance due from Buyer Company. Sales and receivable are entered at net of cash discount Refer to the above, according to the credit terms granted by Seller Company: * Buyer Company grants a 4% cash discount if payment is done before January 27 Seller Company gets a 4% cash discount if payment is done before January 27 Buyer Company pays 96% of the invoice if payment is done in 10 days None of the above Refer to the above, in the journal entry prepared on January 17, Seller Company should: * O Debit Cash $1,920 and Credit Sales Revenue by $1,920 Debit Accounts Receivable $2.000 and Credit Sales Revenue $2.000

Use the following to answer the four questions below On January 17, 2022, Seller Company sold to Buyer Company merchandise having a sale price of $2,000 with terms 4/10, n/30, FOB shipping point. On January 26, Seller Company received a check for the balance due from Buyer Company. Sales and receivable are entered at net of cash discount Refer to the above, according to the credit terms granted by Seller Company: * Buyer Company grants a 4% cash discount if payment is done before January 27 Seller Company gets a 4% cash discount if payment is done before January 27 Buyer Company pays 96% of the invoice if payment is done in 10 days None of the above Refer to the above, in the journal entry prepared on January 17, Seller Company should: * O Debit Cash $1,920 and Credit Sales Revenue by $1,920 Debit Accounts Receivable $2.000 and Credit Sales Revenue $2.000

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter18: Acquiring Capital For Growth And Development

Section: Chapter Questions

Problem 2AP

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