True or False2/10, n/45 is credit term that allow for a 2% discount within 10 days of thepurchase and no discount at all within 45 days of the date of the purchase *TrueFalse5/10, n/30 is a credit termn that allow for 5% discount within the period of 10 daysTrueFalseThis is a required questionFOB shipping point is a shipping term that would typically means that the buyerhas to pay the freight charges

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2/10, n/45 is credit term that allow for a 2% discount within 10 days of the purchase and no discount at all within 45 days of the date of the purchase True False 5/10, n/30 is a credit term that allow for 5% discount within the period of 10 days True False This is a required question

2/10, n/45 is credit term that allow for a 2% discount within 10 days of the purchase and no discount at all within 45 days of the date of the purchase True False 5/10, n/30 is a credit term that allow for 5% discount within the period of 10 days True False This is a required question

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 8-11 (Algo) Trade and purchase discounts; the gross method and the net method compared [LO8-3] [The following information applies to the questions displayed below.] Tracy Company, a manufacturer of air conditioners, sold 170 units to Thomas Company on November 17, 2021. The units have a list price of $600 each, but Thomas was given a 20% trade discount. The terms of the sale were 3/10, n/30. Thomas uses a perpetual inventory system. Exercise 8-11 (Algo) Part 3 3. Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2021 and December 15, 2021 using the net method of accounting for purchase discounts. X Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 3A Reg 3B Prepare the journal entry for the payment, assuming instead that it was made on December 15, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Debit Credit…
what is the Credit for partial payment knowing that information?
PARRISH Pg. 173 PURCHASE DISCOUNTS INVENTORY NET METHOD Please explain the following transactions for periodic and perpetcual Discounts using the Net Method. Receipt of Invoice Periodic Dr. Purchases 980 Cr. Accounts Payable 980 Perpetual Dr. Inventory 980 Cr. Accounts Payable 980 Payment within discount period Periodic Dr. Accounts Payable 980 Cr. Cash 980 Perpetual Dr. Inventory 980 Cr. Cash 980 Payment after discount period Periodic Dr. Accounts Payable 980 Dr. Interest Expense 20 Cr. Cash 1000 Perpetual Dr. Accounts Payable 980 Cr. Interest Expense 20 Cr. Cash 1000
Chpts. 7,6,5 Which of the following statements is correct? Multiple Cholce 24 Purchases should be made only after recelving proper written authorlzation. m. The persowho ordered the goods should also authorize payment. Calculations on an Involce are assumed to be correct if computer generated. Purchase regquisitions do not need to be printed on pre-numbered forms. Address
If NetSolutions sells a customer some products on account (accounts receivable) and offers a discount for early payment of the customers accounts receivable within the credit period, the discount is called a _________________________________. Group of answer choices trade discount purchases discount sales discount sales allowance
A trade credit bill of $80,000 with terms of sale of 2/5, net 30 means the buyer saves if the bill is paid within the discount period A:1600 How much discount will a buyer receive if the buyer pays a trade credit bill of $60,000 with terms of sale of 2/5, net 30 on the net due date? A: 0