Merchandise is sold for $3,600, terms FOB destination, 2/10, n/30, with prepaid freight costs of $150. The amount of the sales recorded is $3,528.

Question

Quizplus · Accepted Answer

The amount of the sales recorded is the selling price of the merchandise minus the freight costs. The selling price is $3,600 and the freight costs are $150, so the amount of the sales recorded is $3,600 - $150 = $3,450. The discount period is 10 days, so the customer can take a 2% discount if they pay within 10 days. The discount amount is $3,450 x 0.02 = $69. If the customer takes the discount, the amount of the sales recorded is $3,450 - $69 = $3,381. However, the question states that the amount of the sales recorded is $3,528, which is incorrect.

Merchandise Is Sold for $3,600, Terms FOB Destination, 2/10, N/30