On November 10 of the current year, Flores Mills sold carpet to a customer for $7,900 with credit terms 3/10, n/30. Flores uses
the gross method of accounting for sales discounts. What is the correct entry for Flores on November 10? Multiple Choice Accounts receivable 7,900 Sales discounts 237 Sales 7,663 Accounts receivable 7,663 Sales 7,663 Accounts receivable 7,663 Sales discounts 237 Sales 7,900 Accounts receivable 7,900 Sales 7,900
1 answer:
Answer:
Accounts receivable 7,900
Sales 7,900
Explanation:
Financial Statements depicts the financial position of a firm at a particular point of time or specified date. The users of financial statements use various types of analysis to understand or compare the current financial statements of the company to prior years or with those of the competitors.
On 10th November, sales of $7,900 was incurred on account with credit ters 3/10, n/30.
Credit terms 3/10, n/30 means 3% discount will be allowed if the customer pays cash within 10 days or else the amount is payable within 30 days.
Since, the customer has not yet paid the amount. Thus, only the entry for sales will be recorded on 10th November.
The journal entry on 10th November would be:
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