Business, 25.03.2021 22:20 ewalchloe5067920

Using the gross method of recording sales discounts, customers with outstanding accounts receivable balances on December 31, 20Y7, will pay their balances in 20Y8. Assume that Calvin Hobbs pays his December 31, 20Y7 account receivable of $8,000 on January 8, 20Y8, and takes a 2/10 sales discount. The payment should be recorded as follows: a. a debit of $7,840 to Cash, a debit of $160 to Allowance for Sales Discounts, and a credit of $8,000 to Accounts Receivable Calvin Hobbs
b. a credit of $8,000 Cash, a credit of $160 to Allowance for Sales Discounts, and a debit of $8,160 to Accounts Receivable-Calvin Hobbs
c. a debit of $8,000 to cash and a credit of $8,000 to Accounts Receivable-Calvin Hobbs
d. a debit of $7,840 to Cash, a debit of $160 to Sales, and a credit of $8,000 to Accounts Receivable-Calvin Hobbs.

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Using the gross method of recording sales discounts, customers with outstanding accounts receivable...

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