Wilton sells softball equipment. On November 14, they shipped $4,000 worth of so
ID: 2592238 • Letter: W
Question
Wilton sells softball equipment. On November 14, they shipped $4,000 worth of softball uniforms to Paola Middle School, terms 2/10, n/30. On November 21, they received an order from Douglas High School for $2,400 worth of custom printed bats to be produced in December. On November 30, Paola Middle School returned $400 of defective merchandise. Wilton has received no payments from either school as of month end. What amount will be recognized as net accounts receivable on the balance sheet as of November 30?
$6,400
$6,000
$4,000
$3,600
$6,400
$6,000
$4,000
$3,600
Explanation / Answer
Answer: $3,600
Net accounts receivable = Sales to Paola Middle School – Sales returns from Paola Middle School = $4,000 - $400 = $3,600
Wilton will recognize net accounts receivable of $3,600 pertaining to Paola Middle School on its November 30 balance sheet.
Since only order has been received from Douglas High School in November, it will not impact the accounts receivable on November 30.
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