X—Mart uses the perpetual inventory

Your Answer- <1.) X—Mart uses the perpetual inventory system to account for its merchandise. On May 1. it soid $1,400 of merchandise on credit with terms of 1f10,nf40. Demonstrate the required journal entry to record the receipt of payment on May 25 by selecting oil ofthe correct actions below. (Check all that apply.) Debit Cash $1,400. Debit Sales Discounts $14. Reason: The payment was not received within the discount period. It would have to be received by May 11 to earn the discount. Credit Saies Discounts $14. Reason: The payment was not received within the discount period. Sales discounts would be debited IF the payment were received within 10 days. Debit Accounts Receivable $1.400. Reason: On May 25th, Accounts Receivable should be credited. On the date of sale, May 1, you would debit Accounts Receivabie. Credit Cash $1,400. Reason: On May 25th, Cash is debited to increase it.