Question

Wilton sells softball equipment. On November 14, they shipped $3,000 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 $1,800 worth of custom printed bats to be produced in December. On November 30, Paola Middle School returned $300 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?

Answer 1

Answer:

The $2,700 is the amount which recognized as net accounts receivable on the balance sheet as of November 30

Explanation:

 The computation of net accounts receivable is shown below:

= Selling price of softball equipment - defective merchandise amount  

= $3,000 - $300

= $2,700

The $1,800 is not considered in the computation part because the Wilton company received an order from Douglas high school which is irrelevant for Paola middle school. Neither the discount terms are considered because the company did not receive the amount.