NEED HELP ASAP Lifetime sells softball equipment. On November 14, they shipped $

Question

NEED HELP ASAP

Lifetime sells softball equipment. On November 14, they shipped $2,000 worth of softball uniforms to Palos Middle School, terms 2/10, n/30. On November 21, they received an order from Tinley High School for $1,200 worth of custom printed bats to be produced in December. On November 30, Palos Middle School returned $200 of defective merchandise. Lifetime has received no payments from either school as of month end. What amount will be recognized as net accounts receivable on the balance sheet as of November 30?

$3,000

$3,200

$2,000

$1,800

Explanation / Answer

SOLUTION;

Terms ‘2/10 ,n/30 means buyer will eligible to take 2 percent Discount if he pays the invoice within 10 days, and if buyer does not pay amount within 10 days then net amount is due within 30 days after sales invoice date.

Here, Lifetime sells softball equipment. On November 14, they shipped $2,000 worth of softball uniforms to Palos Middle School and no money receive within 10 days and Palos School Returned $ 200 Of defective merchandise.

In another case Lifetime receives orders from Tinley High School for $1,200 worth of custom printed bats to be produced in December, here nothing is sell and nothing is advance.

So Lifetime Record will be recognized as net accounts receivable on the balance sheet as of November :

$2000-$200= $1800

So answer is last option $1800.

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