Reporting and Analyzing Merchandising Operations?
Lindsay Store sold merchandise in the amount of $5,800 to a customer on October 1, with credit terms of 2/10, n/30.
The cost of the items sold is $4,000. Jennifer uses the perpetual inventory system. On October 4, the customer returns
some of the merchandise, which were not defective. The selling price and the cost of the returned merchandise is
$500 and $350, respectively. The journal entry that Lindsay makes on October 8, when the customer pays the invoice
A) Debit Cash for $5,684
B) Credit Accounts Receivable $5,800
C) Debit Sales discounts $116
D) Credit Sales Discounts $109
E) Debit Sales Discounts $106
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