Mathematics, 22.04.2021 18:30 briiannamb
Almond inc a registered dealer, purchased a non-current asset from Energise Inc who is a registered dealer, for $20,000
The dealer charged 20% sales tax. The trade discount allowed by the dealers 2.5%
The correct accounting entry recorded in the books for Almond Inc will be..
A. Dr Non current asset $23,400
Cr Energise Inc $23,400
Being goods sold to Energise Inc
B. Dr Non-current asset 20,000
Dr Sales Tax $3,900
Cr Energise Inc $23,400
Cr Trade Discount received
$500
Being goods sold to Energise Inc
C. Dr Non current asset $19,500
Dr Sales Tax $3,900
Cr Energise Inc $23,400
Being goods sold to Energise Inc
D. Dr Non-current asset $20,936
Dr Sales tax $3,900
Cr Energise Inc $23,400
Cr Trade discount receivable $500
Cr Cash discount receivable $936
Being goods sold to Energise Inc
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