during 2016 bava corporation sold merchandise for a total of 600000 the cost of merchandise to bava was $450000 bava offers credit terms of 1/10, n/30 to encourage early payment. at year end there are $15000 of sales still eligible for the 1% discount. Bava believes that all of the companies will pay within the discount period to receive the 1% discount assume bava's fiscal year is Dec 3

To determine the correct adjusting journal entry, we need to consider the specific situation described.

According to the given information, Bava Corporation offers credit terms of 1/10, n/30, which means that customers are eligible for a 1% discount if they pay within 10 days. At year-end, there is still $15,000 of sales that are eligible for the 1% discount.

Since Bava Corporation believes that all customers will pay within the discount period to receive the 1% discount, the correct adjusting journal entry would be to recognize the expected amount of sales discounts.

The amount of sales discounts can be calculated by taking the eligible sales amount ($15,000) and applying the discount rate (1%). Therefore, the correct adjusting journal entry would be:

c) A debit to Sales Discounts for $150 (to increase the Sales Discounts account)
c) A credit to Allowance for Sales Discounts for $150 (to decrease the Allowance for Sales Discounts account)

This entry reflects Bava Corporation's expectation that customers will take advantage of the discount and pay the reduced amount.