abc-company-sold-goods-worth-3000-with-terms-210-net-30-using-the-gross-method-w

Question

ABC Company sold goods worth $3,000 with terms 2/10 net 30. Using the gross method, what is the journal entry if the customer pays within the discount period?

Accepted Answer

Debit Cash $2,940; Debit Sales Discounts $60; Credit Accounts Receivable $3,000.

Answer

Debit Cash $3,000; Credit Accounts Receivable $3,000.

Answer

Debit Cash $2,940; Credit Accounts Receivable $2,940.

Answer

Debit Accounts Receivable $3,000; Credit Cash $2,940; Credit Sales Discounts $60.

ABC Company sold goods worth \$3,000 with terms 2/10 net 30. Using the gross method, what is the journal entry if the customer pays within the discount period?