Claire provide $100 of services to customers on account with terms 2/10, n/30. The Service Revenue account is credited for $100. If the customer pays within 10 days, Claire will record which of the following? Debit Sales Discount $2Debit Cash $98Credit Account Receivable $1005.

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Business

Pierce Horne

5 October, 10:57

Claire provide $100 of services to customers on account with terms 2/10, n/30. The Service Revenue account is credited for $100. If the customer pays within 10 days, Claire will record which of the following? Debit Sales Discount $2Debit Cash $98Credit Account Receivable $1005.

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Dreamey · Answer 1

The journal entry made to record the sale was:

Month/day, service provided on account to XYZ corp. (2/10, n/30):

Dr Accounts receivable 100

Cr Service revenue 100

The journal entry to record the payment would be:

Month/day, payment collected from XYZ corp.:

Dr Cash 98

Dr Sales discount 2

Cr Accounts receivable 100

*Sales discount is a contra revenue account that decreases sales revenue.