Intercoastal Shelving Company Made a Sale to Superb Knives for $8,800

question 62

Essay

Intercoastal Shelving Company made a sale to Superb Knives for $8,800 on December 10, 2019. Since it was approaching year end, Intercoastal wanted to encourage prompt payment, so it provided generous discounts for those clients able to pay promptly. Thus Intercoastal offered terms of 5/10, net 20. Superb paid the invoice on January 20, 2020.
How should Intercoastal record the invoice and its subsequent collection if the company uses (a)the gross method or (b)the net method?

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Definitions:

Innis

Harold Adams Innis, a Canadian professor and the author of seminal works on media, communication theory, and economic history.

World Politics

The study of how global political processes, institutions, and leaders interact in the international arena.

Metaphysical Stage

A phase in Auguste Comte's Law of Three Stages where society searches for the essence of phenomena through abstract speculation and supernatural explanations.

Comte

Auguste Comte, a French philosopher, is known as the father of sociology and positivism, emphasizing the importance of empirical evidence and scientific methods in understanding society.