Company A had the following sales and collections on account during 20X1: Sales 974,000 Discount percentage...
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 |
What is the balance of discounts forfeited on the income statement assuming the net method?
Homework Answers
Balance in diacount forfeited= $ 6,144
.
In Net method sales is recorded assuming that discount will be
taken by the customer.
When customer do not avail the discount discount forfeited account is credited.
Discount forfeited =307200 x 2% = $6,144
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Company A had the following sales and collections on account
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