uilder Company uses the net price method of accounting for cash discounts. In one of its transactions on October 15, 2019, Guilder sold merchandise with a list price of P500,000 to a customer who was given a trade discount of 20% and 15%. Credit terms were 2/10, n/30. The goods were shipped FOB destination, freight collect. Total freight charge paid by the customer was P7,000. On October 20, 2019, the customer returned damaged goods originally billed at P60,000. What is the net realizable value of this account receivable on October 31, 2019? Choices: P273,000 P340,000 P233,200 P280,000

uilder Company uses the net price method of accounting for cash discounts. In one of its transactions on October 15, 2019, Guilder sold merchandise with a list price of P500,000 to a customer who was given a trade discount of 20% and 15%. Credit terms were 2/10, n/30. The goods were shipped FOB destination, freight collect. Total freight charge paid by the customer was P7,000. On October 20, 2019, the customer returned damaged goods originally billed at P60,000. What is the net realizable value of this account receivable on October 31, 2019? Choices: P273,000 P340,000 P233,200 P280,000

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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