22. On June 1, 2020, Penny Corp. sold merchandise with a list price of $40,000 to Linn on account. Penny allowed trade discounts of 30% and 20%. Credit terms were 2/15, n/40 and the sale was made f.o.b. shipping point. Penny prepaid $800 of delivery costs for Linn as an accommodation. On June 12, 2020, Penny received from Linn a remittance in full payment amounting to a. $21,952. b. $22,736. c. $22,752. d. $22,392.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On June 1, 2020, Penny Corp. sold merchandise with a list price of $40,000 to Linn on
account. Penny allowed trade discounts of 30% and 20%. Credit terms were 2/15, n/40
and the sale was made f.o.b. shipping point. Penny prepaid $800 of delivery costs for Linn
as an accommodation. On June 12, 2020, Penny received from Linn a remittance in full
payment amounting to
a. $21,952.
b. $22,736.
$22,752.
d. $22,392.
22.
C.
Transcribed Image Text:On June 1, 2020, Penny Corp. sold merchandise with a list price of $40,000 to Linn on account. Penny allowed trade discounts of 30% and 20%. Credit terms were 2/15, n/40 and the sale was made f.o.b. shipping point. Penny prepaid $800 of delivery costs for Linn as an accommodation. On June 12, 2020, Penny received from Linn a remittance in full payment amounting to a. $21,952. b. $22,736. $22,752. d. $22,392. 22. C.
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