Reference no: EM131265701
For the next few weeks AD Agency is offering a 10% trade discount when providing advertising services of $35,000 or more to its customers to encourage customers to buy in bulk. The Agency also offers 2/10, n30 on all credit sales. All credit sales are invoiced on the 28th of the month. The Agency provided the following services this month; amounts are shown before trade discounts have been deducted:
Designs a $35,000 ad campaign for Customer A— on account— pays in 30 days
Designs a $27,000 ad campaign for Customer B— on account— pays within 10 days
Designs a $45,000 ad campaign for Customer C— on account— pays within 10 days
Designs a $30,000 ad campaign for Customer D—received payment last month
1. What amount of revenue should the Agency record for the ad campaign for Customer A?
2. What amount of revenue should the Agency record for the ad campaign for Customer C?
3. Customer C pays within 10 days, how much will they pay?
4. Determine the monthly sales for the Agency
5. Determine the Agency’s Net Sales for the month.
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