William's Watches sold goods to Colin's Clocks for $1,760 including GST. Colin's Clocks paid their account within the discount period and received a settlement discount of 2%. The correct entry to be recorded in William's Watches' books for receipt of the amount from Colin's Clocks is: O a. DR Cash at bank $1,724.80; DR Discount allowed $32.00; DR GST Payable $3.20; CR Accounts receivable $1,760.00 O b. DR Cash at bank $1,724.80; DR Discount allowed $35.20; CR Accounts receivable $1,760.00 OC. DR Cash at bank $1,728.00; DR Discount allowed $32.00; CR Accounts receivable $1,760.00 O d. DR Cash at bank $1,724.80; DR Discount allowed $35.20; DR GST Payable $3.20; CR Accounts receivable $1,763.20

William's Watches sold goods to Colin's Clocks for $1,760 including GST. Colin's Clocks paid their account within the discount period and received a settlement discount of 2%. The correct entry to be recorded in William's Watches' books for receipt of the amount from Colin's Clocks is: O a. DR Cash at bank $1,724.80; DR Discount allowed $32.00; DR GST Payable $3.20; CR Accounts receivable $1,760.00 O b. DR Cash at bank $1,724.80; DR Discount allowed $35.20; CR Accounts receivable $1,760.00 OC. DR Cash at bank $1,728.00; DR Discount allowed $32.00; CR Accounts receivable $1,760.00 O d. DR Cash at bank $1,724.80; DR Discount allowed $35.20; DR GST Payable $3.20; CR Accounts receivable $1,763.20

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 7MCQ

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