Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. sales-related transactions merchandise is sold on

Sales-Related Transactions Merchandise is sold on account to a customer for $8,000, terms FOB shipping point, 1/10,...

Free

60.1K

Verified Solution

Question

Finance

Sales-Related Transactions

Merchandise is sold on account to a customer for $8,000, termsFOB shipping point, 1/10, n/30. The seller paid the freight of$300.

a. Determine the amount of the sale.
$?

b. Determine the increase to AccountsReceivable.
$? (the answer of this problem is not 8,300 or 7,700)

c. Determine the amount of the discount forearly payment.
$?

d. Determine the amount due within the discountperiod.

$? (the answer of this problem is not 8,300 or 7,700)

Answer & Explanation Solved by verified expert
3.8 Ratings (519 Votes)

A)Amount of sale =The price at which goods are sold to customers = $ 8000

b)Increase in accounts receivable = sale amount 8000 +300 Freight paid by seller on behalf of buyer

                                = $ 8300

c) amount of the discount for early payment = Amount of sales revenue * discount %

                            = 8000* 1%

                            = $ 80

d)Amount due within discount period = Accounts receivable - amount of discount

                                  = 8300-80

                                     = $ 8220
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Sales-Related TransactionsMerchandise is sold on account to a customer for $8,000, termsFOB shipping point, 1/10, n/30. The seller paid the freight of$300.a. Determine the amount of the sale.$?b. Determine the increase to AccountsReceivable.$? (the answer of this problem is not 8,300 or 7,700)c. Determine the amount of the discount forearly payment.$?d. Determine the amount due within the discountperiod.$? (the answer of this problem is not 8,300 or 7,700)

Other questions asked by students

Q

Which one of the following was NOT a problem regarding utilitarian ethics? A) utilitarianism allows for slavery...

Psychology
Q

Do you want to own your own candy store? Wow! With some interest in running your...

Statistics
Q

Discuss these questions relative to the purchased product. Your answers should align with how these stages...

General Management
Q

freight transport management Question 4. The increase in globalised trade is said to be positively correlated to...

General Management
Q

6 5 4 3 2 1 5 4 3 2 y 1 2 5 Write...

Geometry
Q

1 AB 1 3 A B 0 13 If x x 3 2x1 6 x...

Statistics
Q

Problem 7-23 Lou Barlow, a divisional manager for Sage Company, has an...

Accounting
Q

BlueBox Corporation ...

Accounting
Q

Required information [The following information applies to the questions displayed below.] The Field, Brown \&...

Accounting
Q

During 2020, Donna Building Company constructed various assets at a total cost of $12,600,000. The...

Accounting
Q

Earnings per share data are required on the face of which of the following financial...

Accounting
Q

The following selected accounts and amounts are from the adjusted trial balance for Seattle inc....

Accounting