7. On February 3 smart company sold merchandise in the amount of $2700 to Truman company...

7. On February 3 smart company sold merchandise in the amount of $2700 to Truman company with credit terms of 1/10 n/30 the cost of the item sold is $1865 smart uses the perpetual inventory system and the gross method truman pays the invoice on February 8 and takes the proper discount the journal entry that smart makes on February 8 is

Debit cash 1865 credit accounts receivable 1865

Debit cash 2700 credit accounts receivable 2700

Debit cash 2620 debit sales discount 19 credit accounts receivable 2639

Debit cash 1785 credit accounts receivable 1785

Debit cash 2673 debit sales discount 27 credit account receivable 2700

Expert Solution

ekkarill92 answered 2 years ago

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