Author Question: Proffitts, Inc. earned 5,500 in revenues of which 300 has not been collected. The journal entry to ... (Read 80 times)

sammy · **on:** Jul 5, 2018

Proffitts, Inc. earned 5,500 in revenues of which 300 has not been collected. The journal entry to record this transaction includes ________.

A) a debit to Cash of 5,200 and a credit to Revenues of 5,200
B) debits to Cash of 5,200 and Accounts receivable of 300 and a credit to Revenues of 5,500
C) a debit to Revenues of 5,200 and a credit to Cash of 5,200
D) a debit to Revenues of 5,500 and credits to Cash of 5,200 and Accounts receivable of 300

Question 2

Merchandise is sold for 3,600, terms FOB destination, 2/10, n/30, with prepaid freight costs of 150 . The amount of the sales recorded is 3,528.
a. True
b. False

Indicate whether the statement is true or false