Pierce Company sold to Stanton Company merchandise on account FO8 shipping point
ID: 2396866 • Letter: P
Question
Pierce Company sold to Stanton Company merchandise on account FO8 shipping point, 2/10, net 30, for $300. Plerce prepaid the $55 shipping charge. Which of the following entries does Pierce make to record this sale? Accounts Receivable-Stanton, debit $55; Sales, credit $55 Accounts Receivable-Stanton, debit $294; Sales, credit $294, and Accounts Receivable-Stanton, debit $55; Cash, credit $55 Accounts Receivable-Stanton, debit $355; Sales, credit $355 Accounts Receivable-Stanton, debit $55; Sales, credit $55, and Transportation Out, debit $300; Cash, credit $300Explanation / Answer
correct option is " B"
Date Account Debit credit 1 Accounts receivable-stanton 294 sales revenue 294 [sales made 300(1-.02Discount)] 2 Accounts receivable-stanton 55 cash 55 [being shipping paid on behalf of stanton to be recovered]