Netherland Corporation has the following unadjusted balances: Accounts Receivable, $91,000 (debit), and Allowance for Sales Discounts $410 (credit). Of the receivables, $61,000 of them are within the 2% discount period, and Netherland expects buyers to take $1220 in future-period discounts ($61,000 × 2%) arising from this period's sales. The adjusting entry or entries to estimate sales discounts is (are):
A.
| Sales Discounts | 1220? | |
| Accounts Receivable | 1220? |
B.
| Sales Discounts | 1220? | |
| Allowance for Sales Discounts | 1220? |
C.
| Sales Discounts | 810? | |
| Allowance for Sales Discounts | 810? |
D.
| Accounts Receivable | 91,000? | |
| Sales | 91,000? |
E.
| Sales Discounts | 61,000? | |
| Sales | 61,000? | |
| Cost of Goods Sold | 1220? | |
| Inventory Returns Estimated | 1220? |
Answer: C
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