# Accounting

during 2016 bava corporation sold merchandise for a total of 600000 the cost of merchandise to bava was \$450000 bava offers credit terms of 1/10, n/30 to encourage early payment. at year end there are \$15000 of sales still eligible for the 1% discount. Bava believes that all of the companies will pay within the discount period to receive the 1% discount assume bava's fiscal year is Dec 3
bava adjusting journal entry will include:
a) a debit to sales discounts for 150
b) a credit to allowance for sales discounts for 1500
c)a debit to sales discounts for 150
d) no adjusting journal entry is required

1. 👍
2. 👎
3. 👁

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