On April 10, 2020, B Trading sold merchandise to EFC Co. Limited for P130,000 under the terms: less: 5%; 2/10, n/30 FOB destination freight collect. EFC Co. Limited paid the freight of P5,000. On April 15, EFC Co. Limited returned to B Trading defective merchandise worth P10,000 (stated at list). EFC Co. Limited paid the account within the discount period amounting to P106,230. B Trading notify. EFC Co. Limited that the amount that they should pay is P106,720. Whose claim do you think is correct B or EFC? Explain

On April 10, 2020, B Trading sold merchandise to EFC Co. Limited for P130,000 under the terms: less: 5%; 2/10, n/30 FOB destination freight collect. EFC Co. Limited paid the freight of P5,000. On April 15, EFC Co. Limited returned to B Trading defective merchandise worth P10,000 (stated at list). EFC Co. Limited paid the account within the discount period amounting to P106,230. B Trading notify. EFC Co. Limited that the amount that they should pay is P106,720. Whose claim do you think is correct B or EFC? Explain

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6E

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