Answered

Forever Jewelers uses the perpetual inventory system. On April 2, Forever sold merchandise with a cost of $1,500 for $7,000 to a customer on account with terms of 4/15, n/30. Which of the following jounal entries correctly records the sales revenue?
A. Accounts Receivable 6,720
Sales Revenue 6,720
B. Sales Revenue 6,720
Accounts Receivable 6,720
C. Sales Revenue 6,720
Cost of Goods Sold 6,720
D. Accounts Receivable 1,500
Sales Revenue 1,500

Answer :

Answer:

A. Accounts Receivable 6,720

Sales Revenue 6,720

Explanation:

The journal entry is shown below:

Accounts receivable A/c Dr $6,720

        To Sales revenue A/c $6,720

(Being merchandise sold on credit basis)

The computation of sales revenue is shown below:

= Sales revenue - discount

= $7,000 - $7,000 × 4%

= $7,000 - $280

= $6,720

To record we debited the account receivable account and credited the sales revenue account with $6,720 amount

Other Questions