Answer:
The amount of cash received is $2,910
Explanation:
Terms of 3/10, n/30 means there is a discount of 3% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.
As per given data
Sale = $4,600
Sales return = $1,600
Receivable = $4,600 - $1,600 = $3,000
As the payment is made within discount period, so discount will be availed on the amount due
Discount = $3,000 x 3% = $90
Payment by Customer = $3,000 - $90 = $2,910
Answer:
$2,910
Explanation:
The journal entries recorded by Waterway are:
July 15, merchandise sold on account with terms 3/10, n/30
Dr Accounts receivable 4,600
Cr Sales revenue 4,600
Dr Cost of goods sold XX
Cr Merchandise inventory XX
July 20, partial return of merchandise
Dr Sales returns and allowances 1,600
Cr Accounts receivable 1,600
Dr Merchandise inventory YY
Cr Cost of goods sold YY
July 24, invoice is collected from Carla Vista
Dr Cash 2,910
Dr Sales discounts 90
Cr Accounts receivable 3,000
Since Carla Vista paid the invoice within the discount term, it will receive a 3% discount over the remaining balance = $3,000 x 3% = $90
