Question

On June 11, 2019, Hat Trick Manufacturing sold goods worth $400,000 with terms 2/10, n/30 to Ice House Sports. On June 20, 2019, Hat Trick Manufacturing received payment for 1/2 of the amount due from Ice House Sports. What will be the amount reported in the financial statements for the accounts receivable due from Ice House Sports if the fiscal year ends on June 30, 2019 and the gross method is used

Answer 1

Answer:

Accounts Receivable(TM) $200,000

Explanation:

11 June 2019 Sale of Goods on credit

Accounts Receivable(TM) $400,000

                                     Inventory          $400,000

20 June 2019 Receipt of 1/2 of payment

Cash                $200,000

         Accounts Receivable(TM) $200,000