How much Sales Revenue will Danger report

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Problem - On March 19, Zone Company placed an order to purchase merchandise with payment terms of 2/10, n/30. The goods were listed by Danger (the seller) in the company's catalog at a selling price of $3,300. The goods were carried on Danger's balance sheet at a historical cost of $1,200. Zone obtained an 8% trade discount. Danger shipped the goods to Zone on March 26 with shipping terms of FOB Destination and $350 of prepaid freight. The goods arrived at Zone's facility on April 3. Zone inspected the goods, returned 1/3* and paid the balance due to Danger on April 7. *returned units had an original cost to Danger of $400.

Required - How much Sales Revenue will Danger report on the company's income statement as a result of this transaction?

A. $2,156

B. $2,024

C. $3,300

D. $3,036

E. None of the answer choices provided are correct.

Reference no: EM132719742

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