On April 2, Kelvin sold $40,000 of inventory items on credit with the terms 1/10, net n/30. Payment on $24,000 sales was received on April 8 and the remaining payment on $16,000 sales was received on April 27. Assuming Kelvin uses the gross method of accounting for sales discounts, the entry recorded on April 8 would be: a. Debit to Cash for $23,760 and Sales Discounts for $240 and credit to Accounts Receivable for $24,000. b. Debit to Cash for $23,760 and credit to Accounts Receivable for $23,760. c. Debit to Cash for $24,000 and credit to Accounts Receivable for $24,000. d. Debit to Cash for $24,000 and credit to Sales Discounts Forfeited for $240 and Accounts Receivable for $23,760.

Respuesta :

Answer:

Explanation:

d. debit to Cash for $24,000, credit to Accounts Receivable for $23,760 and credit to Sales Discounts Forfeited for $240.

                                                                         Debit         Credit

Cash                                                    $ 24,000.00  

Accounts Receivable                                               $ 23,760.00

Sales Discount Forfeited (24000*1%)                       $   240.00