A sales invoice included the following information: merchandise price, $10,100; terms 1/10, n/eom; FOB shipping point with prepaid freight of $356 added to the invoice. Assuming that a credit for merchandise returned of $2,000 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller? $10,100 $10,351 $2,000 $8,375

A sales invoice included the following information: merchandise price, $10,100; terms 1/10, n/eom; FOB shipping point with prepaid freight of $356 added to the invoice. Assuming that a credit for merchandise returned of $2,000 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller? $10,100 $10,351 $2,000 $8,375

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 13Q: If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the...

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Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, purchases D. sales discounts, cost of goods sold
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