History Bookmarks Window Help Eler Sumner Study Abroad St Pe

History Bookmarks Window Help Eler Sumner Study Abroad &St; People Styles ive. ALEKS INBOK E CeONs Engish Griffin Douglas Caleulator Question #1 1 Parker Company uses the gross method and a perpetual inventory system. Assuming the following entries, compute the amount tha Parker Company received on January 13. January 2 Sold goods costing $4,200 to White Company on account, $7,000, terms 2/10, n/30. The goods are shipped FOB January 8 White Company returned undamaged merchandise previously purchased on account, $1,400 January 13 Received the amount due from White Company Shipping Point, Freight Prepaid by Seller, $300 Amount due from White Company on January 13 Clear Helg Next 2 I don\'t know

Solution

Answer

Calculation of Amount Due fom Parker Company

Sales                                              =7000

Add-Freight               =300

less- sales return                             =(1400)

Dues                                               =5900

Notes

1.No cash discount since payment is made after 10 days.

2.Further, term FOB shipping point is related with sales. Under FOB shpping point sales made at FOB shipping-Seller\'s Dock and all transportation costs after seller\'s dock to buyer\'s dock is the cost of buyer. In this case seller has paid shipping charges. So , This shipping charges will be collected from buyer.