Howe Company sells merchandise on account
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Howe Company sells merchandise on account for $2,100 to Stine Company with credit terms of 2/10, n/30. Stine Company returns $600 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Howe Company make upon receipt of the check?
a. Cash 1,500
Accounts Receivable 1,500
b. Cash 1,470
Sales Returns and Allowances 630
Accounts Receivable . 2,100
c. Cash 1,470
Sales Returns and Allowances 600
Sales Discounts 30
Accounts Receivable 2,100
d. Cash 2,058
Sales Discounts 42
Sales Returns and Allowances 600
Accounts Receivable 1,500
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Solution Summary
Word document contains journal entry that company should make upon receipt of the check.
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