On October 1, Robertson Company sold merchandise in the amount of $5,800 to Alberts, with credit...
Question:
On October 1, Robertson Company sold merchandise in the amount of $5,800 to Alberts, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Robertson uses the perpetual inventory system. Alberts pays the invoice on October 8 and takes the appropriate discount. The journal entry that Robertson makes on October is:
{eq}\bigcirc {/eq}
| Cash | 5,800 | |
| Accounts receivable | 5,800 |
{eq}\bigcirc {/eq}
| Cash | 4,000 | |
| Accounts receivable | 4,000 |
{eq}\bigcirc {/eq}
| Cash | 3,920 | |
| Sales Discounts | 80 | |
| Accounts Receivable | 4,000 |
{eq}\bigcirc {/eq}
| Cash | 5,684 | |
| Accounts receivable | 5,684 |
{eq}\bigcirc {/eq}
| Cash | 5,684 | |
| Sales Discounts | 116 | |
| Accounts Receivable | 5,800 |
Accounts Receivable
Accounts receivable are basically the debtors of a company, to whom the company has either sold its goods or services on credit. Accounts receivable are classified as current assets and the amounts are reflected on a company's balance sheet.
Answer and Explanation: 1
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Answer: Option (e), i.e. the last option.
Explanation:
| Date | Account Titles | Dr | Cr |
| Cash ($5,800 - $116) | $5,684 | ||
| Sales discounts ($5,800*0.02) | $116 | ||
| ... |
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