A buyer of $7,800 in merchandise inventory failed to take advantage of the vendor's credit terms of 2/15, n/45, and instead paid the invoice in full at the end of 45 days. By not taking advantage of the cash discount, the buyer lost the discount of: Multiple Choice $1,170. $156. $100. $78.

A buyer of $7,800 in merchandise inventory failed to take advantage of the vendor's credit terms of 2/15, n/45, and instead paid the invoice in full at the end of 45 days. By not taking advantage of the cash discount, the buyer lost the discount of: Multiple Choice $1,170. $156. $100. $78.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 13Q: If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the...

See similar textbooks

Related questions

Q: On October 5, Swifty Corporation buys merchandise for resale on account from Blue Spruce…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: gross method. Purchased $4,600 of merchandise from Lyon Company with credit terms of 2/15, n/60,…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: Advanced Computer Parts uses the perpetual inventory system and the net method of recording sales…

A: The objective of the question is to determine the correct journal entry to record the payment…

Q: Glen Company uses the perpetual inventory system. The company entered into the following events: 1.…

A: Cost of goods sold (COGS) is a accounting term that refers to the direct costs incurred in producing…

Q: Consider the following transactions for RC Photo: • September 2 RC Photo Shop sold $44,700 of camera…

A: The particular terms and agreements under which a seller lends credit to a buyer for the purchase of…

Q: A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize…

A: Returning the goods to retailers is called sales returns. This is a properly stated period of time…

Q: Enter the missing dollar amounts for the income statement for each of the following independent…

A: Cost of goods sold is the difference between cost of goods available for sale and ending inventory.…

Q: A buyer who purchases merchandise under credit terms of 1/10, n/30 has 30 days after the invoice…

A: Given that, credit terms are = 1/10, n/30

Q: EX.06.204.ALGO Sampson Co. sold merchandise to Batson Co. on account, $28,500, terms 2/15, net 45.…

A: Inventory: It is the goods and material a business hold to sell. There are two methods for recording…

Question

A buyer of $7,800 in merchandise inventory failed to take advantage of the vendor's credit terms of 2/15, n/45, and instead paid the
invoice in full at the end of 45 days. By not taking advantage of the cash discount, the buyer lost the discount of:
Multiple Choice
$1,170.
$156.
$100.
$78.
$780.

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 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

A buyer of $8,100 in merchandise Inventory failed to take advantage of the vendor's credit terms of 3/15, n/45, and instead paid the invoice in full at the end of 45 days. By not taking advantage of the cash discount, the buyer lost the discount of. Multiple Choice O $810. О $1,215. O $81. $100. $243.
Rahul
A buyer of $7,200 in merchandise inventory failed to take advantage of the vendor's credit terms of 2/15, n/45, and instead paid the invoice in full at the end of 45 days. By not taking advantage of the cash discount, the buyer lost the discount of:
None
A buyer received an invoice for P 6,000 dated June 10. If terms are 2/10, n/30, and the buyer paid the invoice within the discount period, what amount will the seller receive? P 6,000 P 5,880 P 4,800 P 120 The purchases discount account is a contra account to Account payable Purchases Sales Sales discount When a seller of merchandise allowed a customer a reduction from the original price for defective goods, the seller will issue to the customer a Credit memorandum Debit memorandum Official receipt Sales invoice When the seller advances the transportation cost and the terms of sales are FOB shipping point, the seller records the payment of the transportation cost by accounts accounts transportation The account that appears in the chart of accounts for a merchandising entity but not for a service entity is Accounts receivable Accumulated depreciation Advertising expense Sales return and allowances Olive Valenzuela Traders purchased merchandise from…
Saved JJ Company purchased on account merchandise with a list price of $10,000. Payment terms were 1/15, n/45. If payment occurs before the discount expires, what is the effect of the purchase discount on the balance sheet? Multiple Choice O Increases accounts payable Decreases accounts receivable O Increases cash Decreases inventory
consider the following transaction: Issued credit memorandum to Dial Corp. for defective merchandise –$315, including 5% GST. Inventory was not returned. Which of the following is true? Sales Returns and Allowances will increase by $300 Sales Returns and Allowances will decrease by $300 Sales Returns and Allowances will increase by $315 Sales Returns and Allowances will decrease by $315
A company that purchases inventory costing $10,000 onterms 2/10, n/30, but first returns one-half of those goods,will receive a discount of what amount if it pays on thelast day of the discount period?a. $0 c. $200b. $100 d. $5,000
Willetta Company purchases inventory for $19,000 with terms 2/10, n/30. It then returns $2,900 of the inventory purchased to the supplier and also receives an allowance for defective inventory of $190. The company pays the amount due within the discount period. What is the amount of the discount that will be taken? (Round your answer to the nearest dollar amount.) Multiple Choice $318 $376 $290 $322
Mahan Company purchased inventory on account under terms 2/10, n/30. Mahan would like to pay the account payable within the discount period in order to receive the discount. Unfortunately, Mahan does not have the cash. What is the maximum annual interest rate that Mahan would be willing to pay in order to borrow the money necessary to settle the account payable?
“a retailer returned 2218 defective items to the manufacturer and received a credit for the retail price of 0.76$ per item less a discount of 5/7 of retail price what was thr amount of the credit received by the retailer
A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, purchases D. sales discounts, cost of goods sold