Wayen, Inc. sells to wholesalers on terms of 2/15, net 30. Wayen has no cash sales but 50% of Wayen’s customers take advantage of the discount. Wayen uses the gross method of recording sales and trade receivables. An analysis of Wayen’s trade receivables at December 31, 20x1 revealed the following: Age Amount. Collectible 0-15 days 100,000 100% 16-30 days 30,000 95% 31-60 days. 5,000 90% Over 60 days 2,500 500 167,500 In its December 31, 20x1 balance sheet, what amount should Wayen report for allowance for discounts? 1,000 b. 1,620 c. 1,675 d. 2,000
Wayen, Inc. sells to wholesalers on terms of 2/15, net 30. Wayen has no cash sales but 50% of Wayen’s customers take advantage of the discount. Wayen uses the gross method of recording sales and trade receivables. An analysis of Wayen’s trade receivables at December 31, 20x1 revealed the following:
Age Amount. Collectible
0-15 days 100,000 100%
16-30 days 30,000 95%
31-60 days. 5,000 90%
Over 60 days 2,500 500
167,500
In its December 31, 20x1
- 1,000 b. 1,620 c. 1,675 d. 2,000
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