Compute the amount that Ken receives from Barbie

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Reference no: EM132704751

Question - On March 12, Ken Company sold merchandise in the amount of $7,800 to Barbie Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Ken uses the perpetual inventory system and the gross method of accounting for sales. On March 15, Barbie returns some of the merchandise. The selling price of the merchandise is $600 and the cost of the merchandise returned is $350. Barbie pays the invoice on March 20, and takes the appropriate discount. Compute the amount that Ken receives from Barbie on March 20?

a. $7,800.

b. $7,200.

c. $7,644.

d. $7,044.

e. $7,056.

Reference no: EM132704751

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