From the following, calculate what amount Blue Co. can expect to receive from Frost Foundation with respect
Question:
From the following, calculate what amount Blue Co. can expect to receive from Frost Foundation with respect to invoice No. 6051, dated March 5, 2018. The total was $3,200 and terms are 3% 15 days, net 45 days. On March 7, credit memorandum No. 103 was issued to Frost Foundation in the amount of $400 for some minor damage to the items sold. Frost was expected to pay within the discount period. In addition, record the credit memorandum using the general journal. No need to post it or record to the accounts receivable subsidiary ledger. (Hint: This is an example of a sales allowance; inventory was not returned.) Note: the discount applies on the balance AFTER the sales allowance has been deducted.
Accounts ReceivableAccounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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College Accounting A Practical Approach
ISBN: 978-0134166698
13th Canadian edition
Authors: Jeffrey Slater, Debra Good