A company sold merchandise for $1,000 on account with terms

A company sold merchandise for $1,000 on account with terms of 2/15, n/30. The company uses a perpetual inventory system. Defective merchandise of $200 was returned two days later

If the payment was received after 30 days, the journal entry to record the cash receipt will include ________.
A) a debit to Cash for $980 and a credit to Accounts Receivable for $980
B) a debit to Cash for $800 and a credit to Accounts Receivable for $800
C) a credit to Sales Revenue for $800 and a debit to Cash for $800
D) a credit to Cost of Goods Sold for $1,000 and a debit to Sales Revenue for $1,000

ANSWER

B