high school

Question

Question 6 of 20
5.0 Points
Secret Trails received payment in full within the credit period for horse boarding for $900 plus 6% sales tax. Terms of the sale were 2/10, n/30. Which entry is required to record this payment?
A. Debit Cash $900; credit Accounts Receivable Sales $900
B. Debit Cash $936; debit Sales Discount $18; credit Accounts Receivable $954
C. Debit Cash $954; credit Sales $954
D. Debit Cash $936; credit Sales $936 

 

Part 1 of 1 -

Question 5 of 20
5.0 Points
Sue’s Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. Five necklaces were returned prior to payment. The entry to record the payment would include a
A. credit to Cash for $625.00.
B. credit to Cash for $662.50.
C. credit to Accounts Receivable for $625.00.
D. credit to Accounts Receivable for $662.50. 

Answer 1

The answer to question 6 is option B, because payment received in full within the credit period. A/R is credited indicative of sales were accrued when the service rendered.

 

Question 5 answer is option D

Since 5 necklaces were returned before the payment, then actual payment is 25x25= 625+6%tax= 662.5 credit to A/R.