Explanation:
The journal entry is as follows:
Cash A/c Dr $2,352
Sales Discount A/c Dr $48
To Accounts receivable $2,400
(Being cash received recorded)
The computation of the account receivable
= Credit sales - sales allowance
= $3,150 - $750
= $2,400
And, the discount would be
= Accounts receivable × percentage given
= $2,400 × 2%
= $48
The remaining amount would be credited to the cash account.
