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Question
Pierce Company sold merchandise to Stanton Company on account FOB shipping point, 2/10, net 30, for $20,000. Pierce prepaid the $500 shipping charge. Which of the following entries does Pierce make for this sale?
a. Accounts Receivable—Stanton, debit $20,000; Sales, credit $20,000
b. Accounts Receivable—Stanton, debit $19,600; Sales, credit $19,600, and
Accounts Receivable—Stanton, debit $500; Cash, credit $500
c. Accounts Receivable—Stanton, debit $20,100; Sales, credit $20,100
d. Accounts Receivable—Stanton, debit $20,000; Sales, credit $20,000, and
Delivery Expense, debit $500; Cash, credit $500
Answer
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