Question: Northend Motors sold a new BMW to Salvador Frezatti The

Northend Motors sold a new BMW to Salvador Frezatti. The list price of the new car was $40,000. Mr. Frezatti traded in a 5-year old Audi that has a Blue Book value of $15,000. Northend also offered a 10% trade discount off the list price. So Mr. Frezatti paid cash of $21,000. After getting home, Mr. Frezatti discovered that the BMW had a scratch in the passenger-side door, and Northend offered an allowance of $1,000 to cover the repair.
Prepare a schedule showing both the gross revenue and the net revenue for Northend Motors from this transaction.

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  • CreatedFebruary 20, 2015
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