24. On December 27, 20x1, ABC Co. received a sale order for a credit sale of goods with selling price of $3,000. The goods were shipped by ABC on December 31, 20x1 and were received by the buyer on January 2, 20x2. The related shipping costs amounted to $20. ABC Co. collected the receivable on January 5, 20x2. If the term of the sale is FOB destination, freight collect, how much net cash is collected on January 5, 20x2? a. 3,020 b. 3,000 c. 2,980

24. On December 27, 20x1, ABC Co. received a sale order for a credit sale of goods with selling price of $3,000. The goods were shipped by ABC on December 31, 20x1 and were received by the buyer on January 2, 20x2. The related shipping costs amounted to $20. ABC Co. collected the receivable on January 5, 20x2. If the term of the sale is FOB destination, freight collect, how much net cash is collected on January 5, 20x2? a. 3,020 b. 3,000 c. 2,980

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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24. On December 27, 20x1, ABC Co. received a sale order for a credit sale of goods
with selling price of $3,000. The goods were shipped by ABC on December 31,
20x1 and were received by the buyer on January 2, 20x2. The related shipping
costs amounted to $20. ABC Co. collected the receivable on January 5, 20x2. If
the term of the sale is FOB destination, freight collect, how much net cash is
collected on January 5, 20x2?
a. 3,020
b. 3,000
c. 2,980
d. 0

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