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Wewaii [24]
2 years ago
13

Essence of Skunk Fragrances, Ltd., sells 5,750 units of its perfume collection each year at a price per unit of $445. All sales

are on credit with terms of 1/10, net 40. The discount is taken by 35 percent of the customers.
Required:
What is the amount of the company's accounts receivable?
Business
1 answer:
lukranit [14]2 years ago
8 0

Answer:

The amount of the company's accounts receivable is $2,558,750.

Explanation:

Accounts Receivables are amounts owed to the company. They are measured at amounts that the company expects to be entitled to after a sale.

The sale journal is :

Debit : Accounts Receivables (5,750 units x $445) $2,558,750

Credit : Sales Revenue (5,750 units x $445)  $2,558,750

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