QUESTION 50
Trefoils Company sold merchandise on account for $6,000 to Thin Mint Company with credit terms of 2/10, n/30. Five days
later, Thin Mint Company returned $2,000 of merchandise that was damaged, along with a check to settle the account.
What entry does Trefoils Company make upon receipt of the check?
Cash
Sales Returns and Allowances
A. Sales Discounts
3,920
2,000
80
Accounts Receivable
6,000
Cash
3,920
Sales Returns and Allowances
2,080
OB.
Accounts Receivable
6,000
Cash
Sales Discounts
5,880
120
Oc
Accounts Receivable
6,000
Cash
4,000
OD.
Accounts Receivable
4,000