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JONAH DANE BAUTISTA
on Oct 20, 2024

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A company records the following journal entry: debit Cash $1,470, debit Sales Discounts $30, and credit Accounts Receivable $1,500. This means that a customer has taken a ___ cash discount for early payment.

A) 1%
B) 2%
C) 5%
D) 10%
E) 15%

Sales Discounts

A reduction in the price of goods or services offered by a seller to encourage prompt payment by the buyer.

  • Learn the methodology for calculating and the importance of cash discounts in payments.
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Adrienne SumarinasOct 27, 2024
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