sold inventory for $ 320 comma 000 , terms 3 /10, n/30. Cost of goods sold was $ 168 comma 000. How much sales revenue will Hair Hut report from the sale? (Assume the company records sales at the net amount.) A. $ 310 comma 400 B. $ 320 comma 000 C. $ 168 comma 000 D. $ 152 comma 000

Question

America West

Business

11 August, 07:06

sold inventory for $ 320 comma 000 , terms 3 /10, n/30. Cost of goods sold was $ 168 comma 000. How much sales revenue will Hair Hut report from the sale? (Assume the company records sales at the net amount.) A. $ 310 comma 400 B. $ 320 comma 000 C. $ 168 comma 000 D. $ 152 comma 000

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Answers (1)

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Flint · Answer 1

A. $ 310 comma 400

Explanation:

Terms of 3/10, n/30 means there is a discount of 3% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.

According to given data

Sales = $320,000

Discount will not be recorded as expense so it should be deducted

Discount = $320,000 x 3% = $9,600

Amount of Check = $320,000 - $9,600 = $310,400