Question
On October 22, Zone Company placed an order to purchase merchandise with payment terms of 2/10, n/30. The goods were listed by Danger (the seller)
On October 22, Zone Company placed an order to purchase merchandise with payment terms of 2/10, n/30. The goods were listed by Danger (the seller) in the companys catalog at a selling price of $15,500. The goods were carried on Dangers balance sheet at a historical cost of $4,800. Zone obtained a 6% trade discount. Danger shipped the goods to Zone on November 2 with shipping terms of FOB Shipping Point and $900 of prepaid freight. The goods arrived at Zones facility on November 5. Zone returned $5,270* of goods and paid the balance due to Danger on November 9.
*returned units had an original cost to Danger of $1,920
How much Sales Revenue will Danger report on the company's income statement as a result of this transaction? (Round your final answers to the nearest $1).
On October 22, Zone Company placed an order to purchase merchandise with payment terms of 2/10, n/30. The goods were listed by Danger (the seller) in the companys catalog at a selling price of $15,500. The goods were carried on Dangers balance sheet at a historical cost of $4,800. Zone obtained a 6% trade discount. Danger shipped the goods to Zone on November 2 with shipping terms of FOB Shipping Point and $900 of prepaid freight. The goods arrived at Zones facility on November 5. Zone returned $5,270* of goods and paid the balance due to Danger on November 9. *returned units had an original cost to Danger of $1,920 How much Gross Profit will Danger report on the company's income statement as a result of this transaction? (Round your final answers to the nearest $1).
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