Merchandise with a sales price of $5,000 is sold on account with terms 2/10, n/30. the journal entry to record the sale would include aa-debit to cash for $5,000b-debit to sales discounts for $100c-credit to sales for $4,900d-debit to accounts receivable for $4,880

B-debit to Sales Discounts for $100

Explanation:

The journal entry is shown below to record the sale:

a. Accounts receivable A/c Dr $5,000

                To Sales revenue $5,000

(Being merchandise is sold on a credit basis)

If the payment is made within 10 days, the journal entry would be

Cash A/c Dr $4,900

Sales discount A/c $100                     ($5,000 x 2%)

            To Accounts receivable A/c $5,000

(Being cash is received)

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