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Home Email Assignments Discussions Grades Quizzes Calendar Virtual Office FAQ Grammar!y More T 2101 Quiz 8 - Requires Respondus LockDown Browser it: 0:45:00 Time Left:0:30:07 Myeisha Reese: Attempt 1 Question 10(1 point) Wilton sells softball equipment. On November 14, they shipped $3,000 worth of softball uniforms to Paola Middle School, terms 2/10, n/30. On November 21, they received an order from Douglas High School for $1.800 worth of custom printed bats to be produced in December. On November 30. Paola Middle School returned $300 of defective merchandise Wilton 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? 9 1) $4,800 uestion 8 Saved 2) $4,500 4ST AM 3/4/2018

Explanation / Answer

In this question, The Net Amount of Receivables is to calculated as on November 30.

As on November 30, Sales made to Paola Middle School is only is to be considered.

For order received by Douglas High School, Goods is to be produced in December only, so, the amount of this order can not be included in Accounts Receivables as on November 30.

So, the amount of Accounts Receivables as on November 30 is calculated as folloes:-

Gross Sales made $3,000 less Sales Returns $ 300 = $ 2700.

Sales Return is made on November 30, so it is deducted to calculate Account Receivables as on November 30.

The condition of Discount (2/10, n/30) is not to be considered, 2% Cash Discount will be granted to Paola Middle School, if payment will be received within 10 days, i.e., till December 1. As given in question, payment is not received till November 30. So if payment will be received on December 1, Cash Discount of 2% will be granted to Paola Middle School by Wilton.

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