You manage the Accounts Receivable Department of a merchandising business. Your billing clerk sent a bill for $2 to a customer who had charged $100 in goods (including sales tax) with terms of 2/10, n/20. The customer called and indicated his displeasure; he can’t understand an error like this since he paid on time. Explain to your billing clerk why Accounts Receivable is credited for $100 and not $98. How was permission given to the customer to send less than the full amount?

You manage the Accounts Receivable Department of a merchandising business. Your billing clerk sent a bill for $2 to a customer who had charged $100 in goods (including sales tax) with terms of 2/10, n/20. The customer called and indicated his displeasure; he can’t understand an error like this since he paid on time. Explain to your billing clerk why Accounts Receivable is credited for $100 and not $98. How was permission given to the customer to send less than the full amount?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 2A: You are the manager of the Accounts Receivable Department for a merchandising business. Your billing...

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You are the manager of the Accounts Receivable Department for a merchandising business. Your billing clerk sent a bill for $2 to a customer who had charged $100 in goods (including sales tax) with terms 2/10, n/30. The customer has called and indicated his displeasure; he can't understand an error like this since he paid on time. For your initial post, explain to your billing clerk why Accounts Receivable is credited for $100 and not $98. Include an explanation as to how permission was given to send less than the full amount?
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