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5. On August 10, Green Company sells goods on credit to Lewis Company for $8,000, terms a. Cash b. Cash 2/10, n/60. Green rec
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Answer #1

Payment terms requires payment within 10 days to avail discount. Actual payment was done on 31 August which is 21 days from date of sale hence no discount will be given. The journal entry will be:

Cash. Dr. 8000

To AR. 8000

so option A is correct.

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