The credit terms 2/10, n/30 are interpreted as: 2% cash discount if the amount is paid within 10 days, or the balance due in 30 days. 10% cash discount if the amount is paid within 2 days, or the balance due in 30 days. 30% discount if paid within 2 days. 30% discount if paid in 10 days. A company purchased $4,000 worth of merchandise. Transportation costs were an additional $350. The company later returned $275 worth of merchandise and paid the invoice within the 2% cash discount period. The total amount paid for this merchandise is: $3,725.00. $3,925.00. $3,995.00. $4,000.50. $4,075.00. A debit to Sales Returns and Allowances and a credit to Accounts Receivable: Reflects an increase in amount due from a customer. Recognizes that a customer returned merchandise and or received an allowance. Requires a debit memorandum to recognize the customer's return. Is recorded when a customer takes a discount. Reflects a decrease in amount due to a supplier. Shilling Company. Inc. sold merchandise in the amount of $5,800 to Anders, with credit terms of 2/10. n/30. The cost of the items sold is $4,000. Shilling uses the perpetual inventory system. The journal entry or entries that Shilling will make on May I is:
32)Option A. This is the credit given mostly in the retail industry.
33)Option D. 4000.5