Question Details

Holt Company sells merchandise 



1. The collection of a $600 account within the 2 percent discount period will result in a
a. debit to Sales Discounts for $12.
b. debit to Accounts Receivable for $588.
c. credit to Cash for $588.
d. credit to Accounts Receivable for $588.
2. Company X sells $400 of merchandise on account to Company Y with credit terms of
2/10, n/30. If Company Y remits a check taking advantage of the discount offered, what is
the amount of Company Y's check?
a. $280
b. $392
c. $360
d. $320
3. Holt Company sells merchandise on account for $2,000 to Jones Company with credit
terms of 2/10, n/30. Jones Company returns $400 of merchandise that was damaged,
along with a check to settle the account within the discount period. What is the amount of
the check?
a. $1,960
b. $1,968
c. $1,600
d. $1,568
4. The collection of a $900 account after the 2 percent discount period will result in a
a. debit to Cash for $882.
b. debit to Accounts Receivable for $900.
c. debit to Cash for $900.
d. debit to Sales Discounts for $18.
5. The collection of a $600 account after the 2 percent discount period will result in a
a. debit to Cash for $588.
b. credit to Accounts Receivable for $600.
c. credit to Cash for $600.
d. debit to Sales Discounts for $12.




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