Ask Question
BusinessBusiness
13 September, 15:21

On August 2, Home Run Apparel sold $30,000 of inventory items on credit with the terms 1/10, net 30. Payment on $18,000 sales was received on August 8 and the remaining payment on $12,000 sales was received on August 27. What would be included in the entry for August 27 under the net method

+2
Answers (1)
  1. 13 September, 19:04
    0
    Dr. Cash $12,000

    Cr. Account receivable $12,000

    Explanation:

    Term 1/10, net 30 means there is a 1% discount available for customers if they payment is made with 10 days after sale and net credit period is 30 days. Payment against $18,000 sales is received within the discount period so, it is eligible for discount but Payment against $12,000 sales is made on August 27 after Discount period, so it was paid without any discount deduction.

    Payment = $12,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On August 2, Home Run Apparel sold $30,000 of inventory items on credit with the terms 1/10, net 30. Payment on $18,000 sales was received ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Acting in good faith gives a business firm a better chance of defending its actions in court. a. True b. False
Answers (1)
Is the mental process of making sense of sensory information?
Answers (1)
Public choice theory suggests that politicians will be most likely to favor redistribution of income from the rich to the poor. unorganized taxpayers to well-organized interest groups. well-organized business groups to consumers. none of the above.
Answers (2)
In a period of rising prices, the inventory method which tends to give the highest reported inventory is a. FIFO. b. moving average. c. LIFO. d. weighted-average.
Answers (1)
Why were coins a more desirable form of money than paper?
Answers (1)
New Questions in Business
A supermarket manager schedules the workers in the supermarket to ensure that enough cash register clerks are available at different times during the day to handle the expected demand from customers.
Answers (1)
Influenza occurs on an annual basis in the United States, with case counts generally peaking during the colder months of the year. In 2011, the approximate influenza case count in the US was 9,000,000.
Answers (1)
Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of $12,000 at the end of its useful life of 4 years or 200,000 kilometers. Ignore GST.
Answers (1)
112 days equals how many weeks
Answers (2)
Why is knowledge of the key success factors in an industry important?
Answers (1)
Home » Business » On August 2, Home Run Apparel sold $30,000 of inventory items on credit with the terms 1/10, net 30. Payment on $18,000 sales was received on August 8 and the remaining payment on $12,000 sales was received on August 27.
Sign Up Forgot Password?