Question

Waterway Industries uses the gross method to record sales made on credit. On June 10, 2020, it sold goods worth $246000 with terms 3/10, n/30 to Carla Vista Co. On June 19, 2020, Waterway received payment for 1/2 of the amount due from Carla Vista Co. Waterways fiscal year end is on June 30, 2020. What amount will be reported in the financial statements for the accounts receivable due from Carla Vista Co.

Answer 1

$123,000

Step-by-step explanation:

Calculation to determine What amount will be reported in the financial statements for the accounts receivable due from Carla Vista Co

Using this formula

Accounts receivable due=(Goods sold worth -(1/2 of the amount due)

Let plug in the formula

Accounts receivable due=$246,000-(1/2 *$246000)

Accounts receivable due=$246,000-$123,000

Accounts receivable due=$123,000

Therefore The amount that willbe reported in the financial statements for the accounts receivable due from Carla Vista Co is $123,000