Delta Company sells to wholesalers on terms 2/15, net 30. Delta has no cash sales but 50% of Delta's customers take advantage of the discount. Delta uses the gross method of recording sales and trade receivables. An analysis of Delta's trade accounts receivable at December 31, 2011 revealed the following: Age Collectible Amount 0-15 days 16- 30 days 31 - 60 days Over 60 days 2,000,000 1,200,000 100,000 50,000 100% 95% 90% 50% 3,350,000 In its December 31, 2011 statement of financial position, what amount should Delta renort as allowance for sales discont?

Delta Company sells to wholesalers on terms 2/15, net 30. Delta has no cash sales but 50% of Delta's customers take advantage of the discount. Delta uses the gross method of recording sales and trade receivables. An analysis of Delta's trade accounts receivable at December 31, 2011 revealed the following: Age Collectible Amount 0-15 days 16- 30 days 31 - 60 days Over 60 days 2,000,000 1,200,000 100,000 50,000 100% 95% 90% 50% 3,350,000 In its December 31, 2011 statement of financial position, what amount should Delta renort as allowance for sales discont?

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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