Betsy's pottery sold 300 tiles at $40 each to a charge customer, terms 1/10, n/30. Which entry is required to record this transaction? (Round intermediary calculations to the nearest cent and final answers to the whole dollar.)

A) Debit Cash $12,000; credit Tile Sales $12,000
B) Debit Accounts Payable $11,880; credit Tile Sales $11,880
C) Debit Accounts Receivable $11,880; debit Sales Discount $120; credit Tile Sales $12,000
D) Debit Accounts Receivable $12,000; credit Tile Sales $12,000

Question

Laura Gawart · Accepted Answer

Final Answer : D, Explanation :  The correct entry to record the sale of tiles on account (charge customer) at $40 each for a total of 300 tiles is to debit Accounts Receivable for the total sale amount ($12,000) and credit Tile Sales for the same amount. The terms 1/10, n/30 indicate a sales discount if paid within 10 days, but this does not affect the initial recording of the sale.

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