Homeplate sells softball equipment. On November 14 they shipped $4000 worth of softball uniforms to Bonita Middle School terms 2/10 n/30. On November 21 they received an order from Vista High School for $1500 worth of custom printed bats to be produced in December. On November 30 Bonita Middle School returned $200 of defective merchandise. Homeplate 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 as of November 30 would be $3,800. This is calculated by taking the original amount shipped to Bonita Middle School ($4,000), subtracting the returned defective merchandise ($200), and not including the order from Vista High School ($1,500) since it was to be produced in December and thus not yet realized as either a shipment or receivable within November.

Homeplate Sells Softball Equipment