Young’s is a distributor of custom umbrellas They shipped 500 units to a high end store on Bay Street Each umbrella was sold to the storefor $15 Unfortunately, the logo on the umbrellas was not 100% accurate Rather than returning them, the store agreed to keep the umbrellas if Young’s offered them a 30% discount Young’s accepted the conditions Which of the following journal entries would Young’s make when the store settles the account?
a Dr Cash $7,500, Cr Accounts Receivable $5,250, Cr Sales Returns & Allowances $2,250
b Cr Accounts Receivable $7,500,DrCash $5,250, DrSales Returns & Allowances $2,250
c Cr Cash $5,250, Cr Sales Returns & Allowances $2,250, DrAccounts Receivable $7,500
d DrCash $5,250, CrAccounts Receivable $5,250