Playtime sold toys listed at $280 per unit to Jack Inc. for $252, a trade discount of 10 percent. Jack Inc. in turn sells the toys in the market at $265. Jenny should record the receivable and related sales revenue (per unit) at

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Quizplus · Accepted Answer

Playtime sold the toys to Jack Inc. for $252, which is the net amount after the 10% trade discount. Therefore, the receivable and related sales revenue should be recorded at $252 per unit. The fact that Jack Inc. sells the toys in the market at a higher price does not affect the initial sale transaction between Playtime and Jack Inc.

Playtime Sold Toys Listed at $280 Per Unit to Jack