Lifetime sells softball equipment.On November 14, they shipped $3,000 worth of softball uniforms to Palos Middle School, terms 2/10, n/30.On November 21, they received an order from Tinley High School for $1,800 worth of custom printed bats to be produced in December.On November 30, Palos Middle School returned $300 of defective merchandise.Lifetime 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 $2,700. This is calculated by taking the original shipment to Palos Middle School of $3,000, subtracting the $300 of returned merchandise, resulting in $2,700. The order from Tinley High School is not included as it is for future production and has not been shipped or invoiced yet.

Lifetime Sells Softball Equipment