Question
Channel Co. (Channel) purchased $6,000 from Soap Inc. (Soap) on September 2nd under the terms 3/12, net/25. On September 4th, Channel returned $500 of the
Channel Co. (Channel) purchased $6,000 from Soap Inc. (Soap) on September 2nd under the terms 3/12, net/25. On September 4th, Channel returned $500 of the merchandise. On September 11th, Soap issued a $800 credit memorandum to Channel. On September 16th, Channel returned an additional $1,200 of merchandise to Soap.
Requirement: A.If Channel pays in full the amount they owe Soap on September 12th, what is the amount that Channel will pay?
B.If Channel pays in full the amount they owe Soap on September 27th, that is the amount that Channel will pay?
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Global Financial Accounting And Reporting Principles And Analysis
Authors: Peter Walton, Walter Aerts
1st Edition
1844802655, 9781844802654
