Wright sells softball equipment. On November 14, they shipped $1,000 worth of softball uniforms to Paola Middle School, terms 2/10, n/30. On November 21, they received an order from Douglas High 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 balance sheet as of November 30?
A) $1,600
B) $1,500
C) $1,000
D) $900

Question

Quizplus · Accepted Answer

The net accounts receivable is calculated as the total sales minus any returns. The initial sale to Paola Middle School was $1,000, but they returned $100 of defective merchandise, reducing the receivable to $900. The order from Douglas High School is not included as it is for future delivery and has not been invoiced yet.

Wright Sells Softball Equipment