Effects of Discounts on Sales and Purchases}

Smithson Products sells shoes and accessories to retail stores. Gross sales in 2018 were \(\$ 1,500,250\) (Smithson's list price) on terms \(4 / 10, \mathrm{n} / 30\). Customers paid for \(\$ 1,200,000\) (Smithson's list price) of the merchandise within the discount period and the remaining \(\$ 300,250\) after the end of the discount period.

\section*{Required:}

1. Compute the amount of sales.

2. Determine how much cash was collected from sales.

Problem