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Question

Part 1
​Jackson's Antiques uses the perpetual inventory system. On June​ 15, Jackson's sold merchandise with a cost of $ 15 comma 500 for $ 19 comma 000 to a customer on account with terms of 2​/10, ​n/30. Which of the following journal entries correctly records the payment received from the customer on June​ 21?
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Part 1
A.
Cash
19 comma 000
        Accounts Receivable
19 comma 000
B.
Cash
18 comma 620
        Accounts Receivable
18 comma 620
C.
Cash
19 comma 000
         Accounts Receivable
380
          Sales Discounts Forfeited
18 comma 620
D.
Cash
18 comma 620
Sales Discounts Forfeited
380
        Accounts Receivable
19 comma 000

Answer 1

To determine the correct journal entry for the payment received from the customer on June 21, we need to consider the terms of the sale (2/10, n/30) and whether the customer took the discount.

The customer is offered a 2% discount if they pay within 10 days. The sale occurred on June 15, and the payment is being received on June 21, which is outside the discount period. Therefore, the customer is not entitled to a discount.

The original amount billed to the customer was $19,000. Since the customer does not take any discount, the full amount of $19,000 needs to be recorded.

The journal entry to record the payment on June 21 would be:

Debit: Cash $19,000
Credit: Accounts Receivable $19,000

This corresponds to option A in your choices:

A.
Cash
19,000
        Accounts Receivable
19,000

So the correct answer is A.