On february 3, smart company, inc. sold merchandise in the amount of $5,800 to truman company, with credit terms of 2/10, n/30. the cost of the items sold is $4,000. smart uses the perpetual inventory system. truman pays the invoice on february 8, and takes the appropriate discount. the journal entry that smart makes on february 8 is:

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Business

Sincere Daniel

27 January, 19:23

On february 3, smart company, inc. sold merchandise in the amount of $5,800 to truman company, with credit terms of 2/10, n/30. the cost of the items sold is $4,000. smart uses the perpetual inventory system. truman pays the invoice on february 8, and takes the appropriate discount. the journal entry that smart makes on february 8 is:

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Clay · Answer 1

The possible journal entry that would be in Truman's tracking inventory would be:

Cash

4,171

Sales discounts

129

Accounts receivable

4,300

This is because the amount of 5,800 had a credit or an excess amount. Originally the costs of the items are 4,000 and it happened to be increased using the 2/10 and n/30 method of the calculation.