Flores Company uses the gross method and a perpetual inventory system. Assuming

Question

Flores Company uses the gross method and a perpetual inventory system. Assuming the following entries, compute the amount that Flores Company received on October 21.

October 10 Sold goods costing $9,000 to Washington Company on account, $15,000, terms 5/10, n/30. The goods are shipped FOB Shipping Point, Freight Prepaid by Seller, $320.

October 16 Washington Company returned undamaged merchandise previously purchased on account, $2,800.

October 21 Received the amount due from Washington Company.

Amount due from Washington County on October 21

Explanation / Answer

Calculate amount received on october 21 :

Sales value 15000 Sales return (2800) 12200 Less: Sales discount 0 Net sales 12200 Add: Freight 320 Amount due from washington country 12520

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