AG Inc.made a $10,000 sale on account with the following terms: 1\15, n\30.If the company uses the net method to record sales made on credit, how much should be recorded as sales revenue?

Question

Quizplus · Accepted Answer

Under the net method, sales are recorded net of any discounts. The terms 1/15, n/30 mean a 1% discount is available if paid within 15 days. Therefore, $10,000 - 1% of $10,000 = $9,900 should be recorded as sales revenue.

AG IncMade a $10,000 Sale on Account with the Following Terms