a. Sold merchandise on account, $92,500 with terms 1/10, n/30. The cost of the merchandise sold was $55,500.
b. Received payment less the discount.
Answer:
Accounts Receivable 92,500
Sales 92,500
Cost of Merchandise Sold 55,500
Merchandise Inventory 55,500
Cash 91,575
Sales Discounts 925
Accounts Receivable 92,500