14. Ten dozen pairs of mitts were bought at a cost of $5.00 each. The invoice was dated December 1 with terms 2/10, 1/20, n/30 EOM. Determine the cash discount which would be granted if the invoice was paid on: a) December 9th b) January 18th c) January 21.

14. Ten dozen pairs of mitts were bought at a cost of $5.00 each. The invoice was dated December 1 with terms 2/10, 1/20, n/30 EOM. Determine the cash discount which would be granted if the invoice was paid on: a) December 9th b) January 18th c) January 21.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: HST rate

A: The harmonized sales tax or HST is actually a combination of provincial and federal taxes on goods…

Q: An invoice for accessories is dated December 27 and this paid on January 10. The trade discount is…

A: The following Free on board agreements is given to the trader as per the quantity purchased.

Q: Jill's dress shop purchaed merchandise worth $1,265 with an invoice date of November 27. Jill paid…

A: Solution: As payment is made with in 15 days of invoice date, , therefore Jill will get cash…

Q: Required information [The following information applies to the questions displayed below.] On…

A: Adjusting Entries - Adjusting Entries are the entries that differentiate current period and next…

Q: replenish the petty cash fund at the end of January.

A: Petty cash fund is prepared by companies to cover minor expenditures of business. It is an asset…

Q: 16.0n October 17, Conrad Beauty Supplies bought $42,000 of goods with terms of 1/10, n/30. One-half…

A: Under gross method, sales are recorded at Full value. Under Net method, sales are recorded at…

Q: You purchase goods on an invoice dated February 5 of a leap year, with terms of 5/10-90X. Calculate…

A: Discount: Price reductions or the sale of anything at a lower price than the item's regular retail…

Q: Jill Corporation accepted a $16,000 note on Aug. 12. Terms of the note were 13% for 100 days. Jill…

A: Answer Correct option is = 2 nd option $16,236.09 . Explanation: Total number of days…

Q: Gingerbread Corp received an advance cash payment from a customer for 40 gingerbread kits at $10 per…

A: Revenue unearned is a liability. Advance cash payment received is a unearned revenue. Increase in…

Q: A credit sale of $3.,500 is made on July 15, terms 2/10, n/30, on which a return of $200 is granted…

A: Formula: Net sales = Sales - sales returns and allowances

Q: (a) What is the last day for taking the cash discount? (b) What is the amount due if the invoice is…

A: To solve this problem, we'll follow these steps:(a) Calculate the last day for taking the cash…

Q: Same Day Surgery Center received a 120-day, 7% note for $96,000, dated April 9 from a customer on…

A: Maturity value of the note = Face value of bonds + Interest

Q: A 100-day note with a face amount of $54,000 and interest rate of 9% is issued on June 1. Required:…

A: 1.

Q: An invoice dated November 25 for $2600 had the terms 3/15,1.5/30,n/45 E.O.M. What is the last day…

A: An invoice is a document that the seller provides the buyer which contains the details of the asset…

Q: Towards the end of winter, a distributor is selling its leather jackets that were listed for $620…

A: a. The $620 initial price of the leather jacket can be subtracted from each subsequent markdown to…

Q: Elm City issued a purchase order for supplies with an estimated cost of $5,000. When the supplies…

A: Reserve for encumbrances: It is the reserve that is maintained for the payment of obligations such…

Q: Spring Appliances received an invoice dated May 15 with terms 3/10 E.O.M. for the items listed…

A: The terms for the cash discount is that the 3% will be provided if the payment is made within 10days…

Q: 4. AB company receives $10,000 for a 6 month, 8% note on 11/1/20. Prepare the journal entry for the…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: 17. Calculate the finance charges for the following credit card account for August (which has 31…

A: Calculation of financial charges is shown as follows: Hence, the interest amount is $4.56.

Question

14.
Ten dozen pairs of mitts were bought at a cost of $5.00 each. The invoice was dated
December 1 with terms 2/10, 1/20, n/30 EOM. Determine the cash discount which would
be granted if the invoice was paid on:
a) December 9th
b) January 18th
c) January 21.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Cash Discount

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following transactions were selected from among those completed by Bennett Retailers in November and December: November 20 November 25 November 28 November 29 December 6 December 20 Required: Sold 20 items of merchandise to Customer B at an invoice price of $5,700 (total); terms 2/10, n/30. Sold two items of merchandise to Customer C, who charged the $700 (total) sales price on her Visa credit card. Visa charges Bennett Retailers a 3 percent credit card fee. Sold 10 identical items of merchandise to Customer D at an invoice price of $9,600 (total); terms 2/10, n/30. Customer D returned one of the items purchased on the 28th; the item was defective and credit was given to the customer. Customer D paid the account balance in full. Customer B paid in full for the invoice of November 20. Assume that Sales Returns and Allowances, Sales Discounts, and Credit Card Discounts are treated as contra-revenues; compute net sales for the two months ended December 31. Note: Do not round your…
16. Goods totaling P50,000 were purchased February 2 with terms 2/10, n/30. Returns of p10,000 were made on February 10. What discounts, if any, can be availed of if the invoice was paid on February 12? a. P200 b. P800 c. P1,000 d. None
16.On October 17, Conrad Beauty Supplies bought $42,000 of goods with terms of 1/10, n/30. One-half of the bill was paid on October 24, and the rest of the bill was paid on October 31. Assume that the seller has agreed to grant discounts on partial payments.Required: Prepare journal entries for October 24 using the: 1. Gross Method2. Net Method
FOR PROFITS 19. The store accountant receives an invoice for $1,400.00 at list price, plus a $54 freight bill with trade discounts of 20 and 10. The in- voice is paid on time and earns an additional 2% cash discount. What is the net cost?
Replace all taxes given in the question with HST of 13%
. Determine the due date of the note. September 21 b. Determine the maturity value of the note. Assume 360 days in a year. Linstrum Company received a 60-day, 9% note for $56,000, dated July 23, from a customer on account. CHART OF ACCOUNTS Linstrum Company General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 129 Allowance for Doubtful Accounts 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold…
Belts are shipped to the buyer on June 4 at a cost of $5500.00. The terms on invoice are 3/10, n/60. When is the last day the buyer can get the cash discount? If the buyer decides to pay for the shipment on June 30. What is the net amount to be paid?
24. SIMPLE DISCOUNT RATE A plumbing contractor receives proceeds of $4713.54 on a 12.5% simple discount note with a face value of $5000. Find the time of the note in days.
PLEASE SHOW ALL WORK You purchase goods on an invoice dated February 5 of a leap year, with terms of 5/10-90X. Calculate the last day of the discount period. The discount period ends 100 days (10 + 90 = 100) after the date of the invoice. February 5 is day 36.
An invoice for a radio cost 1,220 is dated August 3, with the sales term 4/10 EOM. If the bill is paid on September 7, how much is due?