Maxie's Game World sold games to a customer on credit for $3300, terms 2/10, n/30 and the cost of the games was $2400. When recording the collection from the customer made within the discount period, in its cash receipts journal, Maxie's would enter:
A. $3234 in the Cash Dr. column, $66 in the Sales Discount Dr. column and $3300 in the Accounts Receivable Cr. column.
B. $3300 in the Accounts Receivable Dr./Sales Cr. column and $3300 in the Cash Cr. column.
C. $3234 in the Cash Dr. column and $3234 in the Accounts Receivable Cr. column.
D. $3300 in the Cash Dr. column. $2400 in the Sales Cr. column, and $2400 in the Cost of Goods Sold Dr./Inventory Cr. column.
E. $3300 in the Cash Dr. column and $3300 in the Accounts Receivable Cr. column.
Answer: A
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