Wilton sells softball equipment. On November 14, they shipped $4,000 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 $2,400 worth of custom printed bats to be produced in December. On November 30, Paola Middle School returned $400 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?

Question

Quizplus · Accepted Answer

- The total amount of accounts receivable as of November 30 is $6,000 ($4,000 from Paola Middle School and $2,400 from Douglas High School).
- Since Paola Middle School is eligible for a 2% discount if they pay within 10 days, the net accounts receivable from them is $3,920 ($4,000 - $80 discount).
- After Paola Middle School returns $400 of defective merchandise, their net accounts receivable is $3,520 ($3,920 - $400).
- Therefore, the net accounts receivable as of November 30 is $3,520 + $2,400 = $5,920. Rounded to the nearest hundred, the answer is $3,600.

Wilton Sells Softball Equipment