Question

The entry to record a sale of $3800 with terms of 2/13, n/30 will include a...

The entry to record a sale of $3800 with terms of 2/13, n/30 will include a

debit to Sales Revenue for $3724.

credit to Accounts Receivable for $3800.

debit to Sales Discounts for $76.

credit to Sales Revenue for $3800.
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Answer #1
Answer
The correct option is D : credit to Sales Revenue for $3800.
Explanation
At the time of payment (if made within 10 days) the entry will be :
Account Title Debit Credit
Cash $     3,724
Sales discount (3800*2%) $          76
Accounts receivable $           3,800
​Hence the answer is : credit to Sales Revenue for $3800.
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