On November 10 of the current year, Flores Mills provides services to a customer for $8,000 with credit terms 2/10, n/30. The customer made the correct payment on November 17. How would Flores record the collection of cash on November 17?

The journal entry is as follows

On November 17

Cash A/c Dr $7,840

Sales Discount A/c Dr $160

To Accounts receivable $8,000

(Being cash received recorded)

The discount would be

= Accounts receivable * percentage given

= $8,000 * 2%

= $160

The remaining amount would be credited to the cash account.