A seller sold merchandise which has a list price of USD 4,000 on account, giving a trade discount of 20 per cent. The entry on the books of the seller is:
|
a. |
Accounts Receivable |
3,200 |
|
|
Trade Discounts |
800 |
||
|
Sales |
4,000 |
||
|
b. |
Accounts Receivable |
4,000 |
|
|
Sales |
4,000 |
||
|
c. |
Accounts Receivable |
3,200 |
|
|
Trade Discounts |
800 |
||
|
Sales |
4,000 |
||
|
d. |
Accounts Receivable |
3,200 |
|
|
Sales |
3,200 |