On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000...

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On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000...

On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accounting for sales discounts.

What is the correct entry for Flores on December 5, assuming the correct payment was received on that date?

Cash 8,000

Accounts receivable 7,840

Sales discounts revenue 160
Cash 8,000

Accounts receivable 7,840

Interest revenue 160
Cash 8,160

Accounts receivable 8,000

Sales discounts forfeited 160
Cash 8,000

Accounts receivable 8,000

business accounting

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Answer 1

Answer #1

The entry would be

Debit : Cash 8,000

Credit : Accounts Receivable 8,000

Option D is the answer

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Answer 2

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On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000...

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