Question

6 > 9 Question 10 (1 point) Asago Co. sold $21,125 of merchandise to Health Co. on account, with terms 2/15, net 45. The cost of the merchandise sold was $14,650. Health Co. returned $1,925 for merchandise that originally cost $1,650. Asago credited this return to Health Co.'s account, which Health Co. paid in full within the discount period. What is the amount of net sales from the above transaction? Round your answer to the nearest whole number; do not use a "$" in your answer. > Your Answer: Answer

Answer 1

Sales Revenue = $21,125

(-) Sales Return = ($1,925)

(-) Discount Allowed = ($384)

Net Sales = $18,816

Calculation of Discount :-

Sales was of $21,125 of which $1,925 was returned and credited to purchaser's account.

Of remain 19,200 sales amount purchaser exercises the discount benefit so he is given a 2% discount on sales. ($19,200*2%) = $384.

Credit term 2/15 Net 45 means :-

Purchaser get a 2% discount if they pay in 15 days of invoice issued. 45th day after invoice send is the last day to pay the credit balance.