Uses the gross method of accounting for cash discounts

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Reference no: EM13754531

On November 10 of the current year, Flores Mills sold carpet to a customer for $8,000 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts.

What is the correct entry for Flores on November 10? How did you get the answer.

A) Accounts receivable 7,840

Sales 7,840

B) Accounts receivable 8,000

Sales 8,000

C) Accounts receivable 7,840

Cash discounts 160

Sales 8,000

D) Accounts receivable 8,000

Cash discounts 160

Sales 7,840

Reference no: EM13754531

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