Question

Sales-Related Transactions

Merchandise is sold on account to a customer for $7,400, terms FOB shipping point, 1/10, n/30. The seller
paid the freight of $390. Determine the following:
a.
Amount of the sale

b.
Amount debited to Accounts Receivable

c.
Amount received within the discount period
7,326 X

Answer 1

a. Particulars Amount

Sales revenue - Gross $7,400

Less: Sales discount $74 ($7,400*1%)

Net sales revenue $7,474

b. Particulars Amount

Sales revenue-Net $7,474

Add: Freight paid on behalf of purchaser $390

Account receivable debited $7,864

c. Particulars Amount

Total amount due $7,938

Less: Sales discount ($7,400*1%) $74

Net amount to be received $7,864