You sold $8,000 of inventory for $10,000 on terms 2/10,n/30. If your customer pays the bill on day five, which of the following are true statements relating to just the day five transaction? Remember that the larger number in a transaction will be the revenue and the smaller one will be the cost of goods sold. A. You will debit cash for $10,000 B. You will credit inventory for $200 C. You will debit discounts for $200 D. You will debit cash for $9,800 E. You will label this transaction as paid bill F. You will label this transaction as a cash entry Select all that apply.
You sold $8,000 of inventory for $10,000 on terms 2/10,n/30. If your customer pays the bill on day five, which of the following are true statements relating to just the day five transaction? Remember that the larger number in a transaction will be the revenue and the smaller one will be the cost of goods sold. A. You will debit cash for $10,000 B. You will credit inventory for $200 C. You will debit discounts for $200 D. You will debit cash for $9,800 E. You will label this transaction as paid bill F. You will label this transaction as a cash entry Select all that apply.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
You sold $8,000 of inventory for $10,000 on terms 2/10,n/30.
If your customer pays the bill on day five, which of the following are true statements relating to just the day five transaction?
Remember that the larger number in a transaction will be the revenue and the smaller one will be the cost of goods sold.
A. You will debit cash for $10,000
B. You will credit inventory for $200
C. You will debit discounts for $200
D. You will debit cash for $9,800
E. You will label this transaction as paid bill
F. You will label this transaction as a cash entry
Select all that apply.
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