Company A had the following sales and collections on account during 20X1:

Sales	974,000
Discount percentage	2%
A/R collected within the discount period (gross amount)	605,000
A/R not collected within the discount period (gross amount)	307,200

calculate What is the balance of discounts forfeited on the income statement assuming the net method?

Answer rating: 100% (QA)

Using the net method the discounts forfeited should be reported as a deduction from sales o... View the full answer