acct1 On May 1, 2022, FDN Trading sold merchandise to ABC Trading worth P40,000 with creditterms of 2/10, n/30 under freight term FOB Destination. The cost of the freight of P1,200was paid by ABC Trading. On May 3, ABC Trading returned some defective merchandiseworth P2,300 and on the same day, made a partial payment of P16,000. How much net cashshould be collected from ABC Trading by FDN Trading as full payment considering thatpayment is made within the discount period?

The 2/10 n/30 is a term that is used by the company to calculate the amount of the discount under…

worth P2,300 and on the same day, made a partial payment of P16,000. How much net cash should be collected from ABC Trading by FDN Trading as full payment considering that payment is made within the discount period?

worth P2,300 and on the same day, made a partial payment of P16,000. How much net cash should be collected from ABC Trading by FDN Trading as full payment considering that payment is made within the discount period?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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Question

acct1

On May 1, 2022, FDN Trading sold merchandise to ABC Trading worth P40,000 with credit
terms of 2/10, n/30 under freight term FOB Destination. The cost of the freight of P1,200
was paid by ABC Trading. On May 3, ABC Trading returned some defective merchandise
worth P2,300 and on the same day, made a partial payment of P16,000. How much net cash
should be collected from ABC Trading by FDN Trading as full payment considering that
payment is made within the discount period?

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