The collection of a $1400 account after the 2 percent discount period will result in a

A) debit to Cash for $1372.
B) debit to Accounts Receivable for $1400.
C) debit to Cash for $1400.
D) debit to Sales Discounts for $28.

Question

Bella Zhang · Accepted Answer

Final Answer : C, Explanation :  Since the collection is happening after the 2 percent discount period, the customer has not taken advantage of the discount and the full amount of $1400 is due. Therefore, the account will be debited for the full amount of $1400.

The collection of a $1400 account after the 2 percent discount period will result in a

A) debit to Cash for $1372.
B) debit to Accounts Receivable for $1400.
C) debit to Cash for $1400.
D) debit to Sales Discounts for $28.

Definitions

Learning Objectives

Learning Objectives

Related questions

The collection of a $1400 account after the 2 percent discount period will result in aA) debit to Cash for $1372.B) debit to Accounts Receivable for $1400.C) debit to Cash for $1400.D) debit to Sales Discounts for $28.

Definitions

Learning Objectives

Learning Objectives

Related questions

The collection of a $1400 account after the 2 percent discount period will result in a

A) debit to Cash for $1372.
B) debit to Accounts Receivable for $1400.
C) debit to Cash for $1400.
D) debit to Sales Discounts for $28.