The entry that pierce make for the sale transaction is
The correct option is
Explanation:
The pierce company sold goods of $9100 to Stanton on account with a credit terms 1/10, net 30. Under net method, it has to be assumed that discount is availed.
Discount = $9100×1% = $91
So, now the company should record the net accounts recievable balance amount i.e., $9009. The entry is as follows
Accounts recievable-Stanton | $9009 | |
Sales | $9009 |
- Accounts recievable has been debited since the cash is to be recievable which is a current asset for company
-Sales has been credited since the revenue have been accrued.
And Pierce company prepaid the shipping charge of $261 which is need to be recovered from the stanton and the same as recorded as accounts reciveable. The entry is as follows
Accounts recievable | $261 | |
Cash | $261 |
______×_______
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