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 statement of financial position as of November 30?

Question

Quizplus · Accepted Answer

The net accounts receivable is calculated by taking the total sales to Paola Middle School ($1,000) minus the returned merchandise ($100), resulting in $900. The order from Douglas High School is not included as it is for future production and has not been shipped or invoiced yet.

Wright Sells Softball Equipment