A company sells goods on credit. On one sale, they sold it for $20,000 and offered a 2/10, net 30 payment option. Two days after sale, the customer complained and they allowed them a $1,000 sales allowance. The customer paid the net amount within 8 days after the sale. The cash proceeds received by the seller are a. $20,000 b. $19,000 c. $18,600 d. $18,620

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 17Q: A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300....
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A company sells goods on credit. On one sale, they sold it for
$20,000 and offered a 2/10, net 30 payment option. Two days after
sale, the customer complained and they allowed them a $1,000 sales
allowance. The customer paid the net amount within 8 days after
the sale. The cash proceeds received by the seller are
a. $20,000
b. $19,000
c. $18,600
d. $18,620
Transcribed Image Text:A company sells goods on credit. On one sale, they sold it for $20,000 and offered a 2/10, net 30 payment option. Two days after sale, the customer complained and they allowed them a $1,000 sales allowance. The customer paid the net amount within 8 days after the sale. The cash proceeds received by the seller are a. $20,000 b. $19,000 c. $18,600 d. $18,620
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