Chapter 5, Problem 81APSA

To determine

(a)

Sales discounts:

The term $2/15,n/45$ means that if a customer is paying in $15$ days then the payment will be after a discount of $2\%$ on the total value but if the customer is paying in $45$ days then the payment will be made in full which means no discount.

To calculate:

The amount of cash to be collected from sales.

To determine

(b)

Sales discounts:

The term $2/15,n/45$ means that if a customer is paying in $15$ days then the payment will be after a discount of $2\%$ on the total value but if the customer is paying in $45$ days then the payment will be made in full which means no discount.

To calculate:

The sales revenue to be recognized on the income statement.