Asked by Kaitlyn Conigliaro on Jun 24, 2024
Verified
Betsy's pottery sold 300 tiles at $40 each to a charge customer, terms 1/10, n/30. Which entry is required to record this transaction? (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)
A) Debit Cash $12,000; credit Tile Sales $12,000
B) Debit Accounts Payable $11,880; credit Tile Sales $11,880
C) Debit Accounts Receivable $11,880; debit Sales Discount $120; credit Tile Sales $12,000
D) Debit Accounts Receivable $12,000; credit Tile Sales $12,000
Sales Discount
A reduction in the price of goods or services offered by the seller to the buyer as an incentive for early payment.
Charge Customer
The act of billing a customer for goods or services provided, usually resulting in an accounts receivable entry for the business.
Tile Sales
Revenue generated from the sale of tiles, typically used for flooring or walls.
- Gain an understanding of how sales transactions are recorded, including how payment terms influence the accounts receivable and sales revenue accounts.
Verified Answer
Learning Objectives
- Gain an understanding of how sales transactions are recorded, including how payment terms influence the accounts receivable and sales revenue accounts.
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