(Olympia Company sold merchandise on credit with a list price of $70,000. Terms were 2/10, n/30. Given the indicatedsales discounts methods in the responses, which entry is correct?)Gross Price MethodAccounts Receivableа.63,000Sales63,000b. Net Price MethodAccounts Receivable68,600Sales68,600Net Price Methodс.Accounts Receivable40,000Sales40,000d. Gross Price MethodAccounts Receivable68,6000Sales68, 600

Net amount to pay = 70,000 * ( 1 - 0.02 ) = 68,600

(Olympia Company sold merchandise on credit with a list price of $70,000. Terms were 2/10, n/30. Given the indicated sales discounts methods in the responses, which entry is correct?) Gross Price Method Accounts Receivable a. 63,000 Sales 63,000 b. Net Price Method Accounts Receivable 68,600 Sales 68, 600 Net Price Method c. Accounts Receivable 40,000 Sales 40,000 Gross Price Method d. Accounts Receivable 68, 6000 Sales 68,600

(Olympia Company sold merchandise on credit with a list price of $70,000. Terms were 2/10, n/30. Given the indicated sales discounts methods in the responses, which entry is correct?) Gross Price Method Accounts Receivable a. 63,000 Sales 63,000 b. Net Price Method Accounts Receivable 68,600 Sales 68, 600 Net Price Method c. Accounts Receivable 40,000 Sales 40,000 Gross Price Method d. Accounts Receivable 68, 6000 Sales 68,600

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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