K pays on a \$20,000 sale. If the company allows a 2% sales discount for early payment and K pays within the discount period, what amount should be recorded as net sales revenue?

• A. \$19,600
• B. \$18,000
• C. \$20,000
• D. \$20,400

Answer: (A)

Verified step by step guidance

1. Identify the total sales amount, which is \$20,000 in this case.
2. Determine the sales discount percentage offered for early payment, which is 2%.
3. Calculate the discount amount by multiplying the total sales amount by the discount percentage: $\mathrm{Discount}=\mathrm{20,000}\times 0.02$.
4. Subtract the discount amount from the total sales amount to determine the net sales revenue: $\mathrm{Net}\mathrm{Sales}\mathrm{Revenue}=\mathrm{20,000}-\mathrm{Discount}$.
5. Record the resulting net sales revenue as the amount received from the customer after applying the discount.