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× /. D. Look Up ! https://adaptive.wileyplus.com/secure/adaptiveLearningDashboard#/practiceTestchapld-MTV3MTEyMTI1 : Home: Ov Student Textbook/WileyPLUS SC Search Availabilities tm Linkedin , Bookshelf Online: C WileyPLUS ORION Financial Accounting, 8e Practice - Ch 8: Reporting and Analyzing Receivables Q 8.25: On April 3, 2017, Manolo Company sold merchandise on account to Collins Stores for $3,850, terms 2/7, n/30. If Collins returns merchandise with a sale price of $250 on April 5, 2017, what amount will ManoloPe record in their Cash account if Collins pays in full on April 9, 20172 Ha A $3,773 (B $3,850 C$3,600 D $3.528 AbExplanation / Answer
Net sales recorded = 3850 - 250 = 3600
Payment terms 2/7 means that the buyer gets a discount of 2% if payment made in 7 days. Here in this case the payment is actually made within 7 days of purchase and hence cash payable by Collins = 3600 * (1-2%)
= 3528
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