Nash's trading post, llc sells merchandise on account for $1200 to morton company with credit terms of 2/7, n/30. morton company returns $500 of merchandise that was damaged, along with a check to settle the account within the discount period. what entry does nash's trading post, llc make upon receipt of the check?

The answer is: Nash's Trading Post should record the following entries

Explanation:

The credit terms of 2/7, n/30 means that if Morton Company pays within seven days, they will get a 2% discount, or they have thirty days to pay the full receipt.

Morton's check should be for

($1,200 - $500) x 0.98% = $700 x 0.98% = $686  

Nash's Trading Post should record the following entries

Cr Accounts receivable $1,200

Dr $686 Cash

Dr $14 Sales discount

Dr $500 returned merchandise (damaged)

you get one warning and if you do something to violate the guidelines of after that you get kicked off.

mark as

they work in some type of way