Answer:
DR Cash $7,154
Sales Discount $146
CR Accounts Receivable $7,300
Explanation:
The credit term 2/10, n/30 means that the person can get a discount of 2% on the goods purchased if they pay within 10 days otherwise they will have to pay the full amount within 30 days.
The payment was made in 7 days so the customer qualifies for a 2% discount.
Cash = 7,300 * ( 1 - 2%)
= $7,154
Sales Discount = 7,300 * 2%
= $146
