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Homework answers / question archive / The entry to record the receipt of payment within the discount period on a sale of $2,500 with terms of 2/10, n/30 will include a credit to A) Sales Discounts for $50
The entry to record the receipt of payment within the discount period on a sale of $2,500 with terms of 2/10, n/30 will include a credit to
A) Sales Discounts for $50.
B) Cash for $2,450.
C) Accounts Receivable for $2,500.
D) Sales Revenue for $2,500.
Answer: C) Accounts Receivable for $2,500.
Terms 2/10, n/30 means that there will be a 2% discount if the payment is made within 10 days from date of purchase, and the deadline for payment without discount is within 30 days. The journal entry to record the receipt of payment within the discount period on the sale is as follows:
| Accounts | Debit | Credit |
|---|---|---|
| Cash | $2,450 | |
| Sales Discount ($2,500 * 2%) | $50 | |
| Accounts Receivable | $2,500 |
