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19 August, 22:39

On November 10 of the current year, Flores Mills provides services to a customer for $8,000 with credit terms 2/10, n/30. The customer made the correct payment on November 17. How would Flores record the collection of cash on November 17?

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  1. 20 August, 02:06
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    The journal entry is as follows

    On November 17

    Cash A/c Dr $7,840

    Sales Discount A/c Dr $160

    To Accounts receivable $8,000

    (Being cash received recorded)

    The discount would be

    = Accounts receivable * percentage given

    = $8,000 * 2%

    = $160

    The remaining amount would be credited to the cash account.
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