Maxie’s Game World sold games to a customer on credit for $4,000, terms 2/10, n/
ID: 2573938 • Letter: M
Question
Maxie’s Game World sold games to a customer on credit for $4,000, terms 2/10, n/30 and the cost of the games was $3,100. When recording the sales transaction in its sales journal, Maxie’s would enter:
$3,100 in the Accounts Receivable Dr./Sales Cr. column and $4,000 in the Cost of Goods Sold Dr./Inventory Cr.column.
$4,000 in the Accounts Receivable Dr./Sales Cr. column and $3,100 in the Accounts Payable Dr./Purchases Cr. column.
$4,000 in the Accounts Receivable Dr./Sales Cr. column and $4,000 in the Cash Cr. column.
$4,000 in the Accounts Receivable Dr./Sales Cr. column and $3,100 in the Cost of Goods Sold Dr./Inventory Cr. column.
$3,100 in the Accounts Receivable Dr./Sales Cr. column and $4,000 in the Other Accounts column Dr. column.
Maxie’s Game World sold games to a customer on credit for $4,000, terms 2/10, n/30 and the cost of the games was $3,100. When recording the sales transaction in its sales journal, Maxie’s would enter:
Explanation / Answer
$4,000 in the Accounts Receivable Dr./Sales Cr. column and $4,000 in the Cash Cr. column.