Question

Leno Company sells goods to the Fallon Company for​ $11,000. It offers credit terms of​ 3/10, n/30. If Fallon Company pays the invoice within the discount​ period, Leno Company will record a debit to Cash in the amount​ of:

Answer 1

the amount that debited to the cash account is $10,670

Step-by-step explanation:

The computation of the amount that debited to the cash account is shown below:

= Account receivable - discount allowed

= $11,000 - $11,000 × 3%

= $11,000 - $330

= $10,670

Hence the amount that debited to the cash account is $10,670

We simply applied the above formula so that the correct value could come

And, the same is to be considered