Rashotte Company shipped out an order on February 14th (FOB destination) for a t

Question

Rashotte Company shipped out an order on February 14th (FOB destination) for a total of $18367.23. The terms of payment are 5/10 net 30. The order arrived on February 15th. $1595.61 worth of inventory was returned on February 16th since the customer was not happy with these units. On February 18th a credit was granted for $3502.04 since these items were not the right colour, but the customer kept them anyways. On February 20th the customer paid Rashotte. What is the balance in the AR account on February 17th? Select one: a. $13269.58 x b. $18367.23 c. $16771.62 d. $19962.84 Check Your answer is incorrect. The correct answer is: $16771.62

Explanation / Answer

As per the question the A/R as on Feb 17th is required. Hence all transactions after Feb 17th i.e credit on Feb 18th and credit given is to be ignored.

As on Feb 17th A/R balance is 18367.23-1595.61( inventory returned) which gives the balance of $ 16,771.62

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.