Wilton sells softball equipment. On November 14, they shipped $3,000 worth of softball uniforms to Paola Middle School, terms 2/10, n/30. On November 21, they received an order from Douglas High School for $1,800 worth of custom printed bats to be produced in December. On November 30, Paola Middle School returned $300 of defective merchandise. Wilton 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?
A) $4,800
B) $4,500
C) $3,000
D) $2,700

Question

Quizplus · Accepted Answer

The net accounts receivable is calculated as the total sales minus any returns. The initial sale to Paola Middle School was $3,000, but they returned $300 of merchandise. Therefore, the net accounts receivable is $3,000 - $300 = $2,700. The order from Douglas High School is not included as it is for future production and has not been invoiced yet.

Wilton Sells Softball Equipment