Dollar Co.sold merchandise to Pound Co.on account,$25,500,terms 2/15,net 45.The Pound Co.paid the invoice within the discount period.What is the sales amount to be recorded in the above transactions?

Question

Quizplus · Accepted Answer

The sales amount to be recorded is $24,990 because Pound Co. paid within the discount period, allowing them to take a 2% discount on the $25,500 invoice. The discount is $25,500 x 2% = $510, so the recorded sales amount is $25,500 - $510 = $24,990.

Dollar CoSold Merchandise to Pound Co