Ask Question
BusinessBusiness
5 December, 09:51

Syfy Company on July 15 sells merchandise on account to Eureka Co. for $5,000, terms 2/10, n/30. On July 20 Eureka Co. returns merchandise worth $2,000 to Syfy Company. On July 24 payment is received from Eureka Co. for the balance due. What is the amount of cash received

+4
Answers (1)
  1. 5 December, 11:35
    0
    The amount of cash received is $2940

    Explanation:

    The cash received by Syfy on July 24 will be for the amount due after accounting for sales return by Eureka and after deducting the sales discount / discount allowed.

    The balance in accounts receivable account of Syfy after sales return by Eureka on July 20 will be, 5000 - 2000 = $3000

    The payments terms allow a 2% discount if payment is made within 10 days of purchases. Eureka paid within the discount period thus it availed a discount of,

    3000 * 0.02 = $60

    The amount of cash received by Syfy is = 3000 - 60 = $2940
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Syfy Company on July 15 sells merchandise on account to Eureka Co. for $5,000, terms 2/10, n/30. On July 20 Eureka Co. returns merchandise ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which of the following producers is a producer of services? A. Raul fixes cars. B. Taylor sells car parts. C. Jared runs a toy store. D. Tina is a chef in a restaurant.
Answers (1)
Dennis, a new york city investment broker, quit his job in a fit of rage after being accused of embezzling thousands of dollars of his clients' money. four months later, the police discovered dennis driving a cab in los angeles.
Answers (1)
Sonny's Surfer Shop produces and sells custom surf boards. Assume that labor is the only input that varies for the firm. The firm's owner has determined that if she hires 10 workers, the firm can produce 10 surf boards per day.
Answers (1)
3. How do global factors influence the economy in your country?
Answers (1)
Who update/maintains a checkbook register A: The Banking Institution B: the account holder C: the bank teller D: no one
Answers (2)
New Questions in Business
The balanced scorecard approach uses only financial measures to evaluate performance. uses rather vague, open statements when setting objectives in order to allow managers and employees flexibility.
Answers (1)
In the open economy of Sildavia, government spending during 2005 was $30 billion, consumption was $70 billion, taxes were $20 billion, and GDP was $100 billion.
Answers (1)
Ridiculousness, Inc., has sales of $49,000, costs of $22,600, depreciation expense of $2,150, and interest expense of $1,900. If the tax rate is 21 percent, what is the operating cash flow, or OCF?
Answers (1)
A common measure of liquidity is a. the accounts receivable turnover. b. dividends per share of common stock. c. the asset turnover ratio. d. the profit margin.
Answers (1)
Assume that Amazon has a stock-option plan for top management. Each stock option represents the right to purchase a share of Amazon $1 par value common stock in the future at a price equal to the fair value of the stock at the date of the grant.
Answers (1)
Home » Business » Syfy Company on July 15 sells merchandise on account to Eureka Co. for $5,000, terms 2/10, n/30. On July 20 Eureka Co. returns merchandise worth $2,000 to Syfy Company. On July 24 payment is received from Eureka Co. for the balance due.
Sign Up Forgot Password?