Merchandise is sold on account to a customer for $24,000, terms FOB shipping point, 2/10, n/30. The seller paid the freight of $425. Determine the following: (a) amount of the sale, (b) amount debited to Accounts Receivable, (c) amount of the discount for early payment, and (d) amount due within the discount period.
Answer:
a. $24,000
b. $24,425
c. $480 ($24,000 × 2%)
d. $23,945 ($24,425 – $480)