9. The pharmacy receives a 10% discount if a case of 12 ammonium lactate lotion, 365 mL, is orderedfrom the manufacturer. If the invoice is paid within 14 days, the pharmacy receives an additional 2%rebate. If the AWP unit cost of the lotion is $7.25, and the pharmacy pays the invoice in 10 days, what isthe "laid-in" or actual acquisition cost of one bottle (365 mL) for the pharmacy?a. $7.25b. $6.53c. $6.38d. $6.66170.000

Step 1: Determine the total cost before any discountsThe AWP (Average Wholesale Price) per unit is…

Answered: 9. The pharmacy receives a 10% discount…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 11RE

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Given the following, calculate the net price of the purchase by a customer who buys 1,000 cases of product and pays the supplier within 15 days of shipment. What is the total percentage discount on the sale? Cost of product: $75.00 per case Trade discount: $5.00 per case Quantity discount: 1.5% for each 500 cases Performance allowance: 5% Cash discount: 2/10, net 30
ACME Company purchases for resale 1,000 widgets for $64 each. At year- end, the replacement cost is $63 per widget, the estimated selling price is $68 per widget, the disposal cost is $7 per widget, and the estimated markup is $10 per widget.[General Account] If ACME uses LCM costing by item, at what amount will the widgets be reported on the balance sheet? a. $63,000 b. $51,000 c. $64,000 d. $62,500 e. $61,000
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