Please Helpppp?! Accounting Question!?

Use the following to answer questions 1 – 5
For the next few weeks, AD Agency is offering a 15% trade discount when providing advertising services of $15,000 or more to its customers to encourage customers to buy in bulk. AD also offers 2/10, n30 on all credit sales. All credit sales are invoiced on the 15th of the month. AD provided the following services this month; amounts are shown before trade discounts have been deducted:
Designs a $13,500 ad campaign for Customer A— received payment last month
Designs a $22,000 ad campaign for Customer B—on account—pays within 10 days
Designs a $16,500 ad campaign for Customer C— on account—pays in 30 days on account
Designs a $8,500 ad campaign for Customer D— on account—pays within 10 days
1. $___________What amount of revenue should AD Agency record for the ad campaign for Customer A?
2. $___________What amount of revenue should AD Agency record for the ad campaign for Customer B?
3. $___________Customer B pays within 10 days, how much will they pay?
4. $___________Determine the Gross Revenue (Sales) of AD Agency
5. $___________Determine AD Agency’s Net Sales

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One Response to “Please Helpppp?! Accounting Question!?”

  1. Abe says:

    I won’t tell you the answers. I’ll tell you what the terms mean. First give every price a 15% discount. 2/10 means there is a 2% discount off of the invoice price after the trade discount, only if the customer pays within 10 days.
    The n30 means that the net amount of the invoice is due after 30 days.

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