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defon
3 years ago
13

Carson company on july 15 sells merchandise on account to tayler co. for $2,000, terms 2/10, n/30. on july 20 tayler co. returns

merchandise worth $800 to carson company. on july 24 payment is received from tayler co. for the balance due. what is the amount of cash received?
Business
1 answer:
julsineya [31]3 years ago
5 0

The amount of cash received will be the net of discounts and sales returns.

Given,

the sales = $ 2,000

The sales return = $ 800

The discount will be allowed only if the payment is made within the discounts period i.e. 10 days. The sales were made in 15th July and Payment is made on 24th July, thus Carson company is eligible for the discount. The discount will be calculated on the sales net of returns

Net sales = $ 2,000 - $ 800 = $ 1200

Discount = 2 % X $ 1,200 = $ 24

The cash received = $ 2,000 - $ 800 - $ 24 = $ 1,176

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From the question, we are told that:

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Note:

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The Complete Question is as under:

Refer to the HR Reports in the Inquirer. Through past investments in recruiting and training Digby has obtained a productivity index of 109.6%. This means that Digby's labor costs would be increased by 9.6% if it did not have these productivity improvements. This is a competitive advantage that Digby can sustain or even widen further if its competitors have no HR initiatives. Now, refer to the Income Statement in Digby's Annual Report. How much did Digby's productivity improvements save it in direct labor costs (in thousands) last year?

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