Wright sells softball equipment. On November 14, they shipped $800 worth of softball uniforms to Paola Middle School, terms 2/10, n/30. On November 21, they received an order from Paola Middle School for $600 worth of custom printed bats to be produced in December. On November 30, Paola Middle School returned $100 of defective merchandise. Wright has received no payments from either school as of month end. What amount will be recognized as net accounts receivable on the statement of financial position as of November 30?

Question

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The net accounts receivable is calculated as the total sales minus returns and any discounts if applicable. The initial sale was $800, with a return of $100, making it $700. The order for $600 worth of bats is not included as it is for future production and has not been shipped or billed yet.

Wright Sells Softball Equipment