Luis sold goods to Pedro in May 20X9 with a list price of $98,000. Luis allowed a trade discount of 10%. Pedro returned goods with a list price of $3,000 on 31 May and returned a further $5,000 of goods at list price on 6 June as they were found to be unsuitable. How much should Luis record in the sales returns account at 31 May? A $2,700 B $3,000 C $8,000 D $7,200
Luis sold goods to Pedro in May 20X9 with a list price of $98,000. Luis allowed a trade discount of 10%. Pedro returned goods with a list price of $3,000 on 31 May and returned a further $5,000 of goods at list price on 6 June as they were found to be unsuitable. How much should Luis record in the sales returns account at 31 May? A $2,700 B $3,000 C $8,000 D $7,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Luis sold goods to Pedro in May 20X9 with a list price of $98,000. Luis allowed a trade discount of
10%. Pedro returned goods with a list price of $3,000 on 31 May and returned a further $5,000 of
goods at list price on 6 June as they were found to be unsuitable.
How much should Luis record in the sales returns account at 31 May?
A $2,700
B $3,000
C $8,000
D $7,200
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