Asked by
Arnaldo Gutierrez
on Dec 17, 2024
Verified
Bob sold goods for $500 to a charge customer. The customer returned for credit $35 worth of goods. Terms of the sale were 2/10, n/30. If the customer pays the amount owed within the discount period, what is the amount the customer should pay? (Round your calculations to the nearest whole dollar.)
A) $456
B) $465
C) $500
D) $450
Charge Customer
To bill a customer for goods or services provided, thereby creating an account receivable.
Cash Discount
A deduction from the invoice price that is allowed if payment is made within a specified period.
Credit
An accounting entry recording an increase in liabilities or equity or a decrease in assets, opposite of a debit.
- Calculate the effect of sales returns and sales discounts on net sales and net income.
- Apply accounting principles to transactions involving sales discounts, sales returns, and sales allowances.
Verified Answer
DM
Learning Objectives
- Calculate the effect of sales returns and sales discounts on net sales and net income.
- Apply accounting principles to transactions involving sales discounts, sales returns, and sales allowances.
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