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question 7 company x sells 400 of merchandise on account to company y with credit te 4283182


7. Company X sells $400 of merchandise on account to Company Y with credit terms of 2/10, n/30. If Company Y remits a check taking advantage of the 2% discount offered, what is the net amount of Company Y's check? A) $280 B) $392 C) $360v D) $320 8. Birk Company sells merchandise on account for $3,000 to Kiner Company with Credit terms of 2/10, n/30. Kiner Company returns $600 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the net amount of the check? A) $2,940 B) $2,952 C) $2,400 D) $2,352 9. The Cash Collection on a $900 Account Receivable after the 2 percent discount period will result in a A) debit to Cash for $882. B) debit to Accounts Receivable for $900. C) debit to Cash for $900. D) debit to Sales Discounts for $18. 10. If a customer agrees to retain merchandise that is defective because the seller is willing to reduce the selling price, this transaction is known as a: A) Sales Discount. B) Sales Return. C) Contra Asset. D) Sales Allowance.

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