On february 3, smart company sold merchandise in the amount of $5,800 to truman company, with credit terms of 2/10, n/30. the cost of the items sold is $4,000. smart uses the perpetual inventory system and the gross method. truman pays the invoice on february 8, and takes the appropriate discount. the journal entry that smart makes on february 8 is: a. cash 5,684sales discounts 116accounts receivable 5,800b. leash : accounts receivable5,6841 : 5,6841c. i cash: accounts receivable5,800 i : 5,800 id. leash: accounts receivable4,0001 : 4,000 ie. cash 3,920

a. Cash 5,684 Sales discounts 116 , Accounts receivable 5,800

Explanation:

The journal entry is shown below:

Cash A/c Dr                   $5,684

Sales Discount A/c Dr $116

     To  Accounts receivable    $5,800

(Being cash received recorded)

The computation of the account receivable  

= $5,800

And, the discount would be

= Accounts receivable × percentage given

= $5,800 × 2%

= $116

The remaining amount would be credited to the cash account i.e $5,684 ($5,800 - $116)

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.