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garri49 [273]
4 years ago
9

On February 3, Smart Company sold merchandise in the amount of $5,800 to Truman Company, with credit terms of 2/10, n/30. The co

st of the items sold is $4,000. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:a. Cash 5,684Sales discounts 116Accounts receivable 5,800b. leash : Accounts receivable5,6841 : 5,6841C. I Cash: Accounts receivable5,800 I : 5,800 Id. leash: Accounts receivable4,0001 : 4,000 Ie. Cash 3,920
Business
1 answer:
ivolga24 [154]4 years ago
7 0

Answer:

a. Cash 5,684 Sales discounts 116 , Accounts receivable 5,800

Explanation:

The journal entry is shown below:

Cash A/c Dr                   $5,684

Sales Discount A/c Dr $116

     To  Accounts receivable    $5,800

(Being cash received recorded)

The computation of the account receivable  

= $5,800

And, the discount would be

= Accounts receivable × percentage given

= $5,800 × 2%

= $116

The remaining amount would be credited to the cash account i.e $5,684 ($5,800 - $116)

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