Question

Lifetime sells softball equipment. On November 14, they shipped $3,000 worth of softball uniforms to Palos Middle School, terms 2/10, n/30. On November 21, they received an order from Tinley High School for $1,800 worth of custom printed bats to be produced in December. On November 30, Palos Middle School returned $300 of defective merchandise. Lifetime has received no payments from either school as of month end. What amount will be recognized as net accounts receivable on the balance sheet as of November 30?

$4,500
$2,700
$3,000
$4,800

Answer 1

The correct answer is $2,700.

Step-by-step explanation:

According to the scenario, the computation of the given data are as follows:

Sell uniforms = $3,000

Sale return = $300

received order to produce in December = $1,800

So, we can calculate the net account receivable in November by using following formula:

Net account receivable = Sales in November - Sales return in November

By putting the value, we get

= $3,000 - $300

= $2,700