Canary Lawnmowers sold 70 lawnmower parts at $5.00 per part to a customer on December 4 with a cost to Canary of $3.00 per part. Terms of the sale are 5/10, n/25, invoice dated December 4. On December 6, the customer discovers 22 of the parts are the wrong size but decides to keep them after Canary gives them an allowance of $1.00 per part. The customer pays their account in full on December 13.

How much did the customer pay?

Question

Canary Lawnmowers sold 70 lawnmower parts at $5.00 per part to a customer on December 4 with a cost to Canary of $3.00 per part. Terms of the sale are 5/10, n/25, invoice dated December 4. On December 6, the customer discovers 22 of the parts are the wrong size but decides to keep them after Canary gives them an allowance of $1.00 per part. The customer pays their account in full on December 13.

How much did the customer pay?

BlackTom AI · Accepted Answer

The scenario involves a sale of 70 parts at $5.00 each, for a gross invoice amount of 70 × 5 = 350.
Next, an allowance is given for the 22 wrong-size parts at $1.00 per part, reducing the amount due by 22 × 1 = 22. The net amount subject to payment (before any discounts) becomes 350 − 22 = 328.
The payment terms are 5/10, n/25, meaning a 5% discount is available if payment is made within 10 days of the invoice date. The invoice date is December 4 and the payment occurs on December 13, which is within 10 days, so the 5% discount applies to the net amount 328.
Discount amount = 5% of 328 = 0.05 × 328 = 16.4. Subtracting the discount from the net amount gives 328 − 16.4 = 311.6.
Therefore, the payment made on December 13 would be 311.6.
Option-wise, this result corresponds to the option labeled 311.6.

ACCT2200W04 Final- Requires Respondus LockDown Browser

查看解析

登录即可查看完整答案

类似问题

M6-1 (Algo) Reporting Net Sales with Sales Discounts LO6-1 Merchandise invoiced at $9,100 is sold on terms 1/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales?

M6-1 (Algo) Reporting Net Sales with Sales Discounts LO6-1 Merchandise invoiced at $9,100 is sold on terms 1/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales?

Which of the following does not correctly describe the effect of a journal entry involving the recording of a credit card discount? 题目解析

When a credit sale is made with terms of 2/10, n/30 on May 10 and the customer's check is received on May 19, which of the following is true about the May 19 journal entry? 题目解析

Which of the following statements correctly describes the effect of recording the collection of a $19,500 account receivable for which a 3% sales discount was recorded at the time of collection?

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单

ACCT*2200*W04 Final- Requires Respondus LockDown Browser

查看解析

登录即可查看完整答案

类似问题

M6-1 (Algo) Reporting Net Sales with Sales Discounts LO6-1 Merchandise invoiced at $9,100 is sold on terms 1/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales?

M6-1 (Algo) Reporting Net Sales with Sales Discounts LO6-1 Merchandise invoiced at $9,100 is sold on terms 1/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales?

Which of the following does not correctly describe the effect of a journal entry involving the recording of a credit card discount? 题目解析

When a credit sale is made with terms of 2/10, n/30 on May 10 and the customer's check is received on May 19, which of the following is true about the May 19 journal entry? 题目解析

Which of the following statements correctly describes the effect of recording the collection of a $19,500 account receivable for which a 3% sales discount was recorded at the time of collection?

更多留学生实用工具

希望你的学习变得更简单

ACCT2200W04 Final- Requires Respondus LockDown Browser