Asked by Brian Henry on Apr 29, 2024
Verified
Received payment, within the discount period, for merchandise sold previously. This will be recorded with:
A) a credit to an asset account.
B) a debit to a liability account.
C) a debit to Sales.
D) a credit to a contra-sales account.
Discount Period
The time frame within which a payment can be made at a reduced rate.
Asset Account
An account on a balance sheet representing resources owned by a company that have economic value.
Liability Account
A category in financial accounting that represents debts or obligations a company owes to others.
- Understand various types of transactions in the accounts receivable process, including payments, discounts, and returns.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
A
Explanation :
Receiving payment within the discount period for merchandise sold previously increases cash (an asset), which is recorded as a credit to an asset account to decrease the accounts receivable balance.
Learning Objectives
- Understand various types of transactions in the accounts receivable process, including payments, discounts, and returns.
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