Question
In: Accounting
McMahon Company on July 15 sells merchandise on account to Swift Co. for $3,000, terms 2/10, n/30. On July 20
McMahon Company on July 15 sells merchandise on account to Swift Co. for $3,000, terms 2/10, n/30. On July 20, Swift Co. returns merchandise worth $1,200 to McMahon Company. On July 24, payment is received from Swift Co. for the balance due. What is the amount of cash received?
A $1,800
B $1,764
C $1,740
D $3,000
Solutions
Expert Solution
Net sales = Total sales - sales return
= $3,000 - 1,200
= $1,800
Cash discount = Net sales x discount rate
= $1,800 x 2%
= $36
Amount of cash received = Net sales - Cash discount
= $1,800 - 36
= $1,764
Option B. $1,764 is the correct answer.
Option B. $1,764 is the correct answer.
DEEPIKA GOYAL answered 2 years agoRelated Solutions
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