ACCA F3 MCQ Sales Returned Account
Lui sold goods to Pedro in May with a list price of $600,000. Lui allowed a trade discount of 7%. Pedro returned goods with a list price of $ 9,000 on 31 May and returned a further $1,000 of goods at list price on 6 June as they were found to be unsuitable.
How much should Lui record in the sales returned account at 31 May?
| A. | 8,370 |
| B. | 9,000 |
| C. | 10,000 |
| D. | 9,300 |
| Answer. | A. |
Examiner's comment:
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In order to establish how much was recorded in the sales returns account, we need to establish the value of the original sale. The invoice value is always shown net of trade discounts as this reflects the price actually charged to the customer.
In this question the dates must be read carefully as some of the goods are returned after 31 May and we are only concerned with sales returns at that date, which is the goods with a list price of $9,000. The value of the original sale is after the trade discount of 7 %, so the actual amount invoiced for those goods is $8,370 ($9,000 x 0.93 ).
The most popular incorrect answer was B ($9,000), which showed that candidates had not understood what to do with the trade discount.
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