Lifetime sells softball equipment. On November 14, they shipped $3,000 worth of softball uniforms to Palos Middle School, terms 2/10, n/30. On November 21, they received an order from Tinley High School for $1,800 worth of custom printed bats to be produced in December. On November 30, Palos Middle School returned $300 of defective merchandise. Lifetime 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 net accounts receivable is calculated by taking the original shipment to Palos Middle School ($3,000) and subtracting the returned merchandise ($300), resulting in $2,700. The order from Tinley High School is not included as it has not been shipped or invoiced yet.

Lifetime Sells Softball Equipment