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Sales-Related Transactions Merchandise is sold on account to a customer for $16,200, terms FOB shipping point, 2/10, n/30. The seller paid the...

Sales-Related Transactions

Merchandise is sold on account to a customer for $16,200, terms FOB shipping point, 2/10, n/30. The seller paid the freight of $350. Determine the following:

a. Amount of sale $____________

b. Amount debited to Accounts Receivable $____________

c. Amount due within the discount period $____________

Top Answer

After working on your question, I... View the full answer

11 comments
  • If the method used is net method, then answer in A is 15,876
    • dinamarcanete
    • Apr 02, 2018 at 8:39pm
  • okay also answer b is not 16550
    • qwerty57
    • Apr 02, 2018 at 8:40pm
  • b is 16,226....c is 16,226
    • dinamarcanete
    • Apr 02, 2018 at 8:40pm
  • it is important to know first if the problem is using net or gross method of recording sales. Is not stated in the problem?
    • dinamarcanete
    • Apr 02, 2018 at 8:43pm
  • *Is it not stated in the problem?
    • dinamarcanete
    • Apr 02, 2018 at 8:44pm
  • no its not. for the answers to be a. 15876 b. 16226 c. 16226 what is the method?
    • qwerty57
    • Apr 02, 2018 at 9:14pm
  • Since the problem is using net sales method, recording the sales will be net of 2% discount. So, the sales is 16200 x (1-discount rate) = 16200 x (1-.02) = 15876
    • dinamarcanete
    • Apr 02, 2018 at 9:26pm
  • Debit..........Accounts receivable...........(15876 + 350) ..................16,226
    • dinamarcanete
    • Apr 02, 2018 at 9:27pm
  • Credit................Cash.................................................................................................350 for the freight paid
    • dinamarcanete
    • Apr 02, 2018 at 9:28pm
  • credit.....................Sales..........................................................................................................15876
    • dinamarcanete
    • Apr 02, 2018 at 9:28pm
  • for letter c... entry would be: Debit.....Cash 16,226____Credit.....Accounts receivable 16,226
    • dinamarcanete
    • Apr 02, 2018 at 9:29pm

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Other Answers

a. Amount of sale $16200 b. Amount debited to... View the full answer

3 comments
  • I put the A answer for this question the same as what you said and it says it is wrong i think the answer could be 16226 could this be right?
    • qwerty57
    • Apr 02, 2018 at 8:28pm
  • b. Amount debited to Accounts Receivable =16200+350 =16550
    • Whitswan
    • Apr 02, 2018 at 8:34pm
  • Amount due within the discount period 6550-16200*2% -1=16226
    • Whitswan
    • Apr 02, 2018 at 8:34pm

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