Sales-Related Transactions Merchandise is sold on account to a customer for $56,

Question

Sales-Related Transactions Merchandise is sold on account to a customer for $56,500, terms FOB shipping point, 2/10, n/30. The seller paid the freight of $2,100. Determine the following: a. Amount of the sale b. Amount debited to Accounts Receivable c. Amount received within the discount period 56,500 58,600 X 1,130 X Feechadk Check My Work a. The amount of the sale is recorded net of any discount offered. The freight is not added to the sale. b. The amount recorded in Accounts Receivable is what is due from the customer. The freight was paid by the seller, but is the responsibility of the buyer c. The amount due is the balance of the sale (net) plus freight due.

Explanation / Answer

a) Amount of sale = (56500*98%) = 55370

b) Amount debited to account receivable = (55370+2100) = 57470

c) Amount received within the discount period = 57470

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