A retailer sold merchandise for $15,000 with terms of 3/15, net 45. One week after the sale, the retailer granted the customer a $500 sales allowance due to minor product damage. The customer paid the balance within the discount period. What amount of cash did the retailer receive? a. $15,000 b. $14,500 c. $14,055 d. $14,065

A retailer sold merchandise for $15,000 with terms of 3/15, net 45. One week after the sale, the retailer granted the customer a $500 sales allowance due to minor product damage. The customer paid the balance within the discount period. What amount of cash did the retailer receive? a. $15,000 b. $14,500 c. $14,055 d. $14,065

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 2CE: Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is...

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Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
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