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Question
If merchandise sells for $3,500 on account, with terms of 3/15, n/45, and the cost of the inventory sold is $2,100, the journal entry for the receipt of the customer’s payment on account within the discount period under the gross method would include
a. a credit to Cash for $3,395
b. a credit to Accounts Receivable for $3,395
c. a debit to Sales of $105
d. a credit to Sales Discounts for $105
Answer
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