A large retailer obtains merchandise under the credit terms of 1/10, net 30, but routinely takes 60 dyas to pay its bills.(Because the retailer is an important customer, suppliers allow the firsm to stretch its credit terms.)  What is the retailers effective cost of trade credit?

Q: a. What is the net price factor of a 25/19 series of trade discounts? net price______   b. A…

A: A trade discount is a reduction in the price of financial instruments or securities, such as bonds…

Q: The purchasing document should also specify when payment is due. This is usually expressed as a net…

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Q: When a customer returns goods, the merchandiser will:

A: Inventory:   Inventory refers to the raw materials, work-in process, and the finished goods…

Q: Scenario: You sold $30,000 worth of finished goods and $1,000 worth of trading goods to a customer…

A: Shipping can consist of two terms of trade. Either FOB Shipping point or FOB Destination point. In…

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A: Purchase discount is discount availed by purchaser on early payment of purchases of merchandise on…

Q: A wholesaler sold merchandise inventory with in invoice price RO 160,000 to the customer of business…

A: Formula: Cash discount: Goods sold on credit base. If the amount paid with in the discount period…

Q: Merchandise with a list price of $4,200 and costing $2,300 is sold on account, subject to the…

A: Perpetual inventory system: It is a method of inventory management that records real time…

Q: Bell Corporation sold merchandise on account with a list price of $18,000 and a cost of $10,000.…

A: Compute the Bell Corporation's net sales amount: Compute the value of discount:

Q: 1. On June 1, 2023, AAA Company sold merchandise with an invoice price of 5,000,000 to a customer.…

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Q: If merchandise is sold on account to a company for $1000, terms FOB shipping point, 1/10, n/30, and…

A: FOB Shipping Point: Free On Board (FOB) shipping point means that the buyer takes all the risks and…

Q: [The following information applies to the questions displayed below.]Hair World Incorporated is a…

A: Income statement: It implies to a financial statement prepared by the business at the closing of…

Q: Required 1. Assume that Urban One sells a $300 gift certificate to a customer, collecting the $300…

A: 1. Record journal entry for collection of cash for gift certificate and use of gift certificate as…

Q: Shawnee Corp., a household appliances dealer, purchases its inventories from various suppliers.…

A: Definition:   Inventory: Inventory refers to the raw materials, work-in-process, and the finished…

Q: What is the amount of the trade discount on merchandise that a vendor can receive with a list price…

A: Trade discount is the discount one gets on purchase of trade or wholesale orders, which means…

Q: irms usually offer their customers some form of trade credit. This allowance comes with certain…

A: Invoice price is the starting price which is charged by the manufacturer from the dealer. Invoice…

Q: A sales invoice include the following information: merchandise price, $12,000: terms 1/10, n/oem;FOB…

A:

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

A: Under perpetual inventory system, the value of inventory is recorded and credited to cost of goods…

Q: A sales invoice included the following information: merchandise price, $7,100; terms 1/10, n/eom;…

A: The amount of cash that should be received by the seller = Invoice price + Freight charges –…

Q: You place an order for 470 units of inventory at a unit price of $175. The supplier offers terms of…

A: According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts…

Q: Rahul

A: The objective of the question is to identify the correct journal entry for the freight cost of…

Q: Jasper Company is a wholesaler that buys merchandise in large quantities. Its supplier’s catalog…

A: Particulars Amount ($) The list price per unit $500 Less: Discount ($500 x 30%) 150 Net…

Q: 61 If the home office ships merchandise to the branch at an amount above the cost, at what amount…

A: A BRANCH IS A UNIT OF BUSINESS ENTERPRISE LOCATED SOME DISTANCE FROM HOME OFFICE . A BRANCH…

Q: Sales-Related Transactions After the amount due on a sale of $145,225, terms 2/10, n/30, is…

A: Vgyyvv

Q: On August 3, 2018, Pogi Traders Purchased from a supplier merchandise with a list price of P50,000,…

A: Net purchase value on list purchase = Purchase - purchase return = P50000 - 10000 = P40,000

Q: Santa Fe Retailing purchased merchandise from Mesa Wholesalers with credit terms of 3/10, n/60 and…

A: Journal entries are the transactions recorded by the business during a given  financial year. These…

Q: A sales invoice included the following information: merchandise price, $8,000; terms 2/10, n/eom.…

A: Formula to calculate cash received by the seller:Cash received by seller = Merchandise price -…

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: . A calculator is listed at P 859.50 and has a trade discount of 33 1/3 %; a) What is the amount of…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: A sales invoice included the following information: merchandise price, $11,800; terms 1/10, n/eom;…

A: Sales - Return = Net Sales  Merchandise Price = $11,800 Prepaid Freight  = $560  Merchandise…

Q: An automobile ski rack is sold to stores at a wholesale price of $38. If a store has a $23 markup,…

A: The price which manufacturers charges to the retailers is the wholesale price. Retail price is the…

Q: Assume Bella Donna’s General Store bought, on credit, a truckload of merchandise from American…

A: If the payment is made within discount period, the discount canbbe availed as per the terms and…

Q: 0 Required Information [The following information applies to the questions displayed below] Ramos…

A: Cost of goods sold = Cost of goods sold for cash + Cost of goods sold on account - goods returned…

Q: Nevada Company provided services with a list price of $48,500 to Small Enterprises with terms 2/15,…

A: Formula: Net cash received = List price - discount where, Discount = List price x discount rate

Q: A sales invoice included the following information: merchandise price, $6,000; terms 2/10, n/eom.…

A: Formula to calculate cash received by the seller:Cash received by seller = Merchandise price -…

Q: A sales invoice included the following information: merchandise price, $9,000; terms 1/10, n/eom;…

A: The seller is a person who sells the goods and would receive money for the goods sold.

Q: A photographer buys some merchandise with a list price of $5,000. If the supplier offers trade…

A: Formula: Trade discount amount = Invoice amount x Discount rate Multiplying invoice amount with…

Q: LO 6.1 What do credit terms of 4/10, n/30 mean in regard to a purchase?   3LO 6.1 What is the…

A: Perpetual Inventory System: Inventory is recorded and updated after every transaction. Inventory…

Q: GIVE PROPER EXPLANATION OF COST OF GOODS AND GROSS MARGIN. YOU MADE A SALE FOR $588,000. THE…

A: If you make a sale for $588,000 and the gross margin is 61%, we need to solve for what the cost of…

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 manufacturer offers a 30/25 chain discount if the invoice subtotal is above $1,000. If the list…

A: calculation of chain discount are as follows