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KENNY SOLD GOODS AMOUNTING TO $60,000 ON CREDIT TO EDWIN AT 20 AUGUST.A SETTLEMENT DISCOUNT OF 10% FOR ANY SETTLEMENT WITHIN 15 DAYS FROM THE INVOICE DATE IS GIVEN.KENNY DID NOT EXPECT EDWIN TO UTILISE THE SETTLEMENT DISCOUNT OFFERED.KENNY HAD RECEIVED PAYMENT OF $18,000 FROM EDWIN ON 30 AUGUST.
HOW SHOULD KENNY RECORD THE ABOVE TRANSACTION?
A. DR BANK $18,000, DR SALES $2,000, CR RECEIVEABLES $20,000
B. DR BANK $18,000, DR SALES $1,800, CR RECEIVEABLES $19,800
C. DR BANK $18,000, CR RECEIVEABLES $18,000
D. DR BANK $20,000, CR RECEIVEABLES $20,000
Why are you attempting a question for which you do not have an answer? You should be using a Revision Kit from one of the ACCA Approved Publishers – it has answers and explanations.
Tell me what you think is the correct answer and then I will tell you whether you are right or wrong (and I will explain if you are wrong)!
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