Answered: A discount store purchased some special…

A discount store purchased some special product at a list price of $1,400. If the broker gives a 10.25% trade discount, what is the amount of the trade discount? $143.50 $840.00 $1,256.50 $1,484.00

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: A photographer buys some merchandise with a list price of $9,000. If the supplier offers trade…

A: Trade discount is given at the time of sale while cash discount given at the time of end payment.…

Q: Easy Patterns Fabric buys merchandise with a list price of $5,500. Use the net price, complement…

A: Trade discount is considered as a reduction in the price of goods because of company policy. It is…

Q: Given credit terms of 3/10, n/30 on a sale of $2,000, calculate the sales discount, assuming payment…

A: credit terms: 3/10 - means 3% discount given if payment is made within 10 days

Q: Merchandise subject to terms 2/10, r/30, FOB shipping point, is sold on account to a customer for…

A: Credit terms specify payment conditions, like discounts for early payment (e.g., 2/10, net 30).FOB…

Q: Create the Correct answer

A: The terms "2/10, n/30, FOB destination" mean that the buyer can take a 2% discount on the invoice…

Q: Merchandise with an invoice price of $5,000 is purchased on March 1 subject to terms of 2/10, n/30.…

A: Note: 2/10, n/30: Here, 2 represents the discount rate if payment is made within ten days. And if…

Q: You buy goods at a list price of $820. If you receive a trade discount of 25% and terms are “2/15,…

A: Term discount indicates that if the due amount is paid within the time specified in the term then…

Q: taller? $1.200 $2.500 $50 $1,250 1,250 worth of merchandise, terms 4/15, n/30. If the customer pays…

A: $1,200 A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer…

Q: The following information were found from the records of FDN Company: Net Purchases = P90,000…

A: The discount can be of different types as trade discount and cash discount. The trade discount is…

Q: Norfolk Sporting Goods purchases merchandise with a catalog list price of $15,817. The retailer…

A: Trade discount is the reduction in the list price of the product. which is offered by the seller at…

Q: JIH took delivery of merchandise invoiced at $24,600.00 with terms cash 6, 2/40, n/60. Calculate the…

A: The interest is calculated based on certain terms and conditions. The payment is depends on time…

Q: A discount clothing store buys shirts and slacks with a list price of $14,750. If the wholesaler…

A: Single equivalent discount = 1 - [(1 - first discount) x (1 - second discount) x (1 - third…

Q: Schofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Easy Patterns Fabric buys merchandise with a list price of $9,500. Use the net price, complement…

A: The complement of your trade- discount rate is 100 percent minus the discount rate. This is…

Q: Trade discounts of 20/10 may be taken on an invoice that totals $938.50. This amount includes…

A: Amount due if invoice paid within discount period = invoice value - prepaid freight cost - trade…

Q: A retailer purchases some merchandise with an invoice price of $19,900 and terms of sale of 5/15,…

A: Discount on sales value: When the customer pays the amount within discount period then customer is…

Q: Suppose a certain appliance store purchases the following items. Calculate the extended total after…

A: Trade discount is the discount given to customers on list price. This discount will not be recorded…

Q: An invoice shows a net price of $176.72 after trade discounts of 30%, 10%, and 2% have been…

A: STEP1 The rate of return used to reduce future cash flows to their present value is known as a…

Q: Norfolk Sporting Goods purchases merchandise with a catalog list price of $14,200. The retailer…

A: Merchandise transaction are recorded in the companies which they buy and sell inventory items. Some…

Q: Suppose a certain appliance store purchases the following items. Calculate the extended total after…

A: An invoice is a document given to the buyer by the seller to collect payment. It includes the cost…

Q: Norfolk Sporting Goods purchases merchandise with a catalog list price of $14,684. The retailer…

A: Cost of Inventory Purchased = List Price - Trade Discount - Cash Discount

Q: What amount should Norfolk debit to the merchandise inventory account (Round your answer to the…

A: Answer: Option a.

Q: You buy goods at a list price of $1,500. If you receive a trade discount of 20% and terms are…

A: Discount period is defined as the days provided by the seller to the buyer of goods to avail the…

Q: A company purchases merchandise for $23,000. The seller also offers credit terms of 2/10, n/30.…

A: Cost of purchase = 23000 Credit Terms = 2/10, n/30

Q: Suppose a certain appliance store purchases the following items. Calculate the extended total after…

A: A trade discount also known as a functional discount or a wholesale discount, is a reduction in the…

Q: A wholesaler gives trade discounts 30%, 11% and 3% to his regular customers. a) Find the single…

A: Trade discount is that discount which is given to all the customers on the list price of the…

Q: The amount of discount to be recorded if the invoice is paid within the discount period on a…

A: The cash discount would be calculated on the amount, after deducting the trade discount from list…

Q: The vendor shipped and invoiced the following goods on June 7: 200 folding chairs at $50 list…

A: Trade discounts are applied on list price. Trade discount = List price * trade discount % =…

Q: 21-The buyer received an invoice from the seller for merchandise with list price of RO 7500 and…

Question

A discount store purchased some special product at a list price of $1,400. If the broker gives a 10.25% trade discount, what is the amount of the trade discount?

$143.50

$840.00

$1,256.50

$1,484.00

Expert Solution

Step 1

Given,

List price = $1,400

Trade discount = 10.25%

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

BUS 038 : Business Computatns5. You buy goods at a list price of $820. If you receive a trade discount of 25% and terms are “2/15, n/30,” what amount must you pay if you pay within the discount period?
A wholesale firm made sales with the following list prices and trade discounts. Calculate the amount the firm will use to record each sale in the sales journal. A. List price of $1,700 and trade discount of 55 percent. B. List price of $1,300 and trade discount of 45 percent. C. List Price of $2,200 and trade discounts of 30 and 20 percent. (Round your answer to 2 decimal places.) A. Amount B. Amount C. Amount
A certain person bought merchandise for $ 3,500 with conditions or terms of payment of 5/10, n / 30. In order to pay within the discount period, she took out a loan at 6% interest. How much did you save if you used the loan to pay for merchandise that had a cash discount? A. $147.77 B. $163. 92 C. $183. 94 D. $198. 23
A computer lists for $ 600. 1. Find the trade discount if a discount rate of $ 10 is offered. 2. Find the net price. 3. Find the net price rate. 4. Use the net price rate to recalculate the net price.
Suppose a certain appliance store purchases the following items. Calculate the extended total after the trade discounts for each line, the invoice subtotal, and the invoice total. (Round your answers to the nearest cent.) Trade Extended Quantity Unit Merchandise Unit List Discounts Total 150 ea. Blenders $39.95 20/15/15 $ 300 ea. Toasters $38.88 20/10/10 18 doz. Coffee Mills $244.30 30/9/6 12 doz. Juicers $480.00 25/10/5 Invoice subtotal Extra 5- % volume discount on total order - Invoice total %24 %24 %24 24
what is the total price of the first invoice that activates the chain discount?