On February 3, Smart Company sold merchandise in the amount of $4,800 to Truman Company, with credit terms of 1/10, n/30. The cost of the Items sold is $3,310. Smart uses the perpetual Inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is: Multiple Choice Cash 3,310 Accounts receivable 3,310 Cash 4,800 Accounts receivable 4,800 Cash 4,720 Sales discounts 33 Accounts receivable 4,753 3,230 Cash 3,230 Accounts receivable

On February 3, Smart Company sold merchandise in the amount of $4,800 to Truman Company, with credit terms of 1/10, n/30. The cost of the Items sold is $3,310. Smart uses the perpetual Inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is: Multiple Choice Cash 3,310 Accounts receivable 3,310 Cash 4,800 Accounts receivable 4,800 Cash 4,720 Sales discounts 33 Accounts receivable 4,753 3,230 Cash 3,230 Accounts receivable

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

Problem 7E: On December 31, Marchant Company took a physical count of its merchandise inventory. It operates...

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