Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 22, 2019 Wildwood Company placed an order to purchase merchandise on account from seller Berry, Inc. Berry lists the merchandise in the online

On December 22, 2019 Wildwood Company placed an order to purchase merchandise on account from seller Berry, Inc. Berry lists the merchandise in the online catalog at a price of $28,000. Berry carries the goods on the balance sheet at a historical cost of $12,000. Wildwood is a good customer and was able to negotiate the following terms: (i) a 5% trade discount and (ii) payment terms of 2/10, n/30. The goods were shipped by Berry FOB shipping point on December 28, 2019 and were delivered to Wildwoods facility on January 4, 2020. On January 4 (i.e. at the time of the delivery), Wildwood paid $2,000 of shipping cost and returned $1,600 of merchandise to Berry (the returned items had an original cost to Berry of $560). Wildwood paid Berry in full on January 5.

Consider the above facts and select the answer choice below that shows the cash paid by Wildwood on January 5 in order to settle the account in full. (Round your final answers to the nearest $1).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Choosing Your Topic Researching the Topic

Answered: 1 week ago

Question

The Power of Public Speaking Clarifying the

Answered: 1 week ago