Question

Lifetime sells softball equipment. On November 14, they shipped $3,000 worth of softball uniforms to Palos Middle School, terms 2/10, n/30. On November 21, they received an order from Tinley High School for $1,800 worth of custom printed bats to be produced in December. On November 30, Palos Middle School returned $300 of defective merchandise. Lifetime 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:

$2,700

Explanation:

Calculation to determine What amount will be recognized as net accounts receivable on the balance sheet as of November 30

Using this formula

Net accounts receivable=November 14 Goods shipped -November 30 Defective merchandise returned

Let plug in the formula

Net accounts receivable=$3,000-$300

Net accounts receivable=$2,700

Therefore The amount that will be recognized as net accounts receivable on the balance sheet as of November 30 is $2,700