O-LevelAccountingSources and recording of data7707/11 · Oct/Nov 2012 · Q71 Mark
On 1 October Wayne invoiced Mandy for goods, $5000, less 20% trade discount. Mandy was also entitled to a cash discount of 5% if the balance was paid by 31 October. On 28 October Mandy sent Wayne a cheque for the amount due. What entries will Wayne make on the debit side of his cash book on 28 October?
Adiscount allowed: $200, bank: $3800
Bdiscount allowed: $250, bank: $3750
Cdiscount allowed: $1200, bank: $3800
Ddiscount allowed: $1250, bank: $3750
✓ Correct answer
A: discount allowed: $200, bank: $3800
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