On July 1, a company sells inventory on account to a customer for $40,000, with terms...

 

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On July 1, a company sells inventory on account to a customer for $40,000, with terms of 1/15, n/30. The company uses the net method to account for sales discounts. The customer pays the amount due on July 30, Which statement accurately characterizes this transaction? The company should receive $39,600 cash on July 30. The company should recognize sales revenue of $39,600 on July 1. The company should recognize an account receivable of $40,000 on July 1. The company should recognize sales discounts of $400 on July 30. On July 1, a company sells inventory on account to a customer for $40,000, with terms of 1/15, n/30. The company uses the net method to account for sales discounts. The customer pays the amount due on July 30, Which statement accurately characterizes this transaction? The company should receive $39,600 cash on July 30. The company should recognize sales revenue of $39,600 on July 1. The company should recognize an account receivable of $40,000 on July 1. The company should recognize sales discounts of $400 on July 30.

Answer rating: 100% (QA)

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