A journal entry with a debit to cash of $980,a debit to Sales Discounts of $20,and a credit to Accounts Receivable of $1,000 means that a customer has taken a 10% cash discount for early payment.

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Gabriella Goncalves · Accepted Answer

Final Answer : False, Explanation :  The entry indicates a customer took advantage of a sales discount, but the discount amount is $20 on a $1,000 invoice, which is a 2% discount, not 10%.

A journal entry with a debit to cash of $980,a debit to Sales Discounts of $20,and a credit to Accounts Receivable of $1,000 means that a customer has taken a 10% cash discount for early payment.

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