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The Coca-Cola Company sold merchandise to PepsiCo, Inc. on credit terms of 3/15, n/45. The invoice amount is $250,000. PepsiCo returns $25,000 worth of merchandise.
The Coca-Cola Company sold merchandise to PepsiCo, Inc. on credit terms of 3/15, n/45. The invoice amount is $250,000. PepsiCo returns $25,000 worth of merchandise. Calculate: a) The net amount PepsiCo needs to pay if they avail the discount. b) The amount of discount if paid within the discount period. c) The net amount saved by availing the discount. d) The total sales revenue if the discount is not availed. e) Evaluate the impact of sales returns on accounts receivable and revenue recognition.
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