Ask Question
BusinessBusiness
23 October, 08:28

Concord Company on July 15 sells merchandise on account to Pharoah Co. for $3800, terms 3/10, n/30. On July 20 Pharoah Co. returns merchandise worth $1800 to Concord Company. On July 24 payment is received from Pharoah Co. for the balance due. What is the amount of cash received

+4
Answers (1)
  1. 23 October, 08:41
    0
    The amount of cash received from this sale on July 24 is $1940.

    Explanation:

    The sell of merchandise on July 15 will result in an increase in sales revenue of $3800 and accounts receivables of $3800. The entry would be,

    July 15 Accounts receivable $3800 Dr

    Sales revenue $3800 Cr

    The sales return of $1800 will reduce the amount of accounts receivables. The amount of accounts receivables outstanding and eligible to receive payment from will be (3800 - 1800) = $2000

    The accounts receivables are offered a 3% discount if they pay within the 10 days of sale. On July 24, the payment is received within discount period and the discount allowed will be,

    Discount allowed = 2000 * 0.03 = $60

    The cash received will be $2000 - $60 = $1940
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Concord Company on July 15 sells merchandise on account to Pharoah Co. for $3800, terms 3/10, n/30. On July 20 Pharoah Co. returns ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If a harmful substance is used in a workplace, the company must provide what informational document to employees? A. Material safety data sheet B. Ergonomics checklist C. Guarantee D. Warranty
Answers (1)
Weekly sales at nancy's restaurant total $ 84,000. labor required is 420 hours at a cost of $21,000. raw materials used amount to $40,000. what is the partial measure of productivity for labor hours?
Answers (1)
When bart heard an ad state that kraft's pasta anytime microwave meals could be prepared in three minutes, he thought that he would find the meals in his supermarket's frozen food aisle with other microwave meals.
Answers (1)
Skysong Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at a cost of $1,032,100. At December 31, 2020, the raw materials to be purchased have a market value of $984,100.
Answers (1)
What will happen to return on investment (roi) if selling and administrative expenses decrease while everything else remains the same?
Answers (1)
New Questions in Business
Mark and Mindy are new parents. They wish to start saving for their son's college education. They anticipate they'll need $150,000 in 18 years. How much should they deposit quarterly in an account that pays 7.
Answers (1)
An employee has proposed adding new equipment that would speed up the loading rate to 5.71 trucks per day. the equipment would cost an additional $100 per day for each dock. should the manager invest in the new equipment?
Answers (1)
Castle Black Camping is twice as risky as the average stock. The market should earn 11% and the risk free rate is 2%. What is a fair return for CBC? (20%)
Answers (1)
During the meeting, Michael always wants to focus on business and has been pushing Norio to sign the contract, whereas Norio seems to like spending more time talking about personal preferences and hobbies, building up personal relationships before
Answers (1)
Conversion costs are the sum of: a. fixed and variable overhead costs. b. labor costs and overhead costs. c. direct material costs and overhead costs. d. direct labor and indirect labor costs.
Answers (2)
Home » Business » Concord Company on July 15 sells merchandise on account to Pharoah Co. for $3800, terms 3/10, n/30. On July 20 Pharoah Co. returns merchandise worth $1800 to Concord Company. On July 24 payment is received from Pharoah Co. for the balance due.
Sign Up Forgot Password?