Question

sold inventory for $ 320 comma 000​, terms 3​/10, ​n/30. Cost of goods sold was $ 168 comma 000. How much sales revenue will Hair Hut report from the​ sale? ​(Assume the company records sales at the net​ amount.) A. $ 310 comma 400 B. $ 320 comma 000 C. $ 168 comma 000 D. $ 152 comma 000

Answer 1

A. $ 310 comma 400

Step-by-step 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.

According to given data

Sales = $320,000

Discount will not be recorded as expense so it should be deducted

Discount = $320,000 x 3% = $9,600

Amount of Check = $320,000 - $9,600 = $310,400