July 1 Sold $21,200 of computers to Company with terms 3/15, n/60. Riverbed uses the gross method to record cash discounts. Riverbed estimates allowances of $1,378 will be honored on these sales. 10 Riverbed received payment from Robertson for the full amount owed from the July transactions. 17 Sold $212,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Riverbed for its purchase of July 17.

Question

Holmes

Business

6 April, 15:55

July 1 Sold $21,200 of computers to Company with terms 3/15, n/60. Riverbed uses the gross method to record cash discounts. Riverbed estimates allowances of $1,378 will be honored on these sales. 10 Riverbed received payment from Robertson for the full amount owed from the July transactions. 17 Sold $212,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Riverbed for its purchase of July 17.

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Answers (1)

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Lilianna Bender · Answer 1

Question is incomplete. I will try to answer to the best of my ability.

Answer and Explanation:

The credit terms '3/15, n/60' and '2/10, n/30' mentioned in the question signifies the terms in which riverbed has sold its product to the buyer.

3/15, n/60 means that if the buyer pays with 15 days since the transaction takes place then the buyer would receive 3% on the receivable.

However, if they fail to pay within 15 days then the buyer would have to pay the full amount within 60 days.

Similarly, 2/10, n/30 means 2% discount within 10 days since the transaction took place. Otherwise full payment after 10 day.