Leno company sells goods to the fallon company for 11000 it offers credit terms of 3/10 n/30 if fallon company pays the invoice within the discount period, Leno Company will record a debit to Cash in the amount of:.

Leno Company will record a debit to Cash in the amount of: $10,670.

Explanation:

The credit terms of 3/10 n/30 implies that if Fallon Company pays within 10 days, it will enjoy 3 percent discount on 11,000 which is the amount of goods sold to it by Leno company; but Fallon Company must pay the full amount within 30 days (n means net amount) if it does not pay within 10 days. Therefore, the discount period is between the first day and the 10th day.

Since it is indicated in the question that Fallon company pays the invoice within the discount period, that implies it enjoys 3% discount. The discount amount can therefore be calculated as follows:

Discount amount = $11,000 * 3% = $330

The amount that Leno Company will record as a debit to Cash can be calculated as follows:

Amount to debit to Cash = $11,000 - $330 = $10,670

Therefore, the amount to debit to Cash by Leno Company is $10,670.

Note that the complete journal entries in the book of Leno Company for this transaction when Fallon Company pays within the discount period is as follows:

Debit Cash for $10,670

Debit Discount allowed for $330

Credit Accounts Receivable - Fallon Company for $11,000.

anjan should should report alteast 5000 on the first apyment and 10,000 each year

explanation: