ABC Company sold merchandise with P10,000 list price, subject to trade discount of 25%, and is paid by the customer within the discount period on terms 2/10, n30. What is the amount of payment from customer?
Q: A retailer received an invoice for the purchase of twenty rackets at RM140 each. He was given trade…
A: Retailers and wholesalers want to know the one single discount rate that equates to a series of…
Q: An invoice for accessories is dated December 27 and this paid on January 10. The trade discount is…
A: The following Free on board agreements is given to the trader as per the quantity purchased.
Q: A sala set priced at P 2,250 was offered to a retailer with a discount of P 350.00. What was the…
A: Trade Discount: An example of a trade discount is the amount by which a manufacturer lowers the…
Q: he entry to record the receipt of payment within the discount period on a sale of $2400 with terms…
A: Terms 2/8, n/30 indicate that if the payment is made within 8 days discount shall be allowed at the…
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: Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 2/10, net 30, for $15,000.…
A: FOB shipping point is when the title of goods purchased passes to the buyer when the goods are…
Q: The company purchased merchandise for ₱55,496 less 2 on terms 50% down, balance 2/10, n/30. How…
A: Purchase discount is a discount provided by the seller if payment is made within a specific period…
Q: On May 9, 2021. Papa Corporation sold merchandise with a list price of P 150,000 to Mama Company on…
A: Purchases are always recorded net of trade discounts. When more than one trade discount is applied…
Q: Calculate the single equivalent discount and amount of trade discount on merchandise listing for…
A: Discount means the amount which is not required to be paid or received. 30/10/5 means that 30%…
Q: The amount of discount to be recorded if the invoice is paid within the discount period on a…
A: Trade discount is that discount which is being given to all the customers on the list price of the…
Q: On April 1, a company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what…
A: Formula: Sales discount = Net sales x Discount rate
Q: Brimstone Co. purchased 1,865 items at $8.24 each less trade discounts of 26%, 12%. On August 27,…
A: Trade discount is the discount offered to encourage the buyer to purchase the item in bulk quantity.…
Q: A retailer purchases some merchandise with an invoice price of $19,700 and terms of sale of 5/15,…
A: Invoice Price = $19,700 Terms of Sale , If paid in 15 days 5% discount on the amount
Q: list price of ₱90,000, subj
A: Given as, Merchandise Inventory list price = P 90,000 Trade discounts = 20% Another discounts = 10%
Q: On June 1, 2021, ABC Company SOLD merchandise with a P120,000 list price. Trade Discount Credit…
A: The trade discount is deducted from the list price of the merchandise. The sales price is calculated…
Q: Oliver Valenzuela Traders purchased merchandise from San Jose suppliers for P3,600 list price,…
A: Amount of Payment to seller = Cost of goods purchased- Trade discount- cash discount- a cost paid on…
Q: Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 1/10, net 30, for $10,000.…
A: Journal is a place where journal entries are recorded in the book keeping system before ledger…
Q: Crossings Company regularly buys merchandise from Best Company and is allowed trade discounts of 20%…
A: Trade discount is one of type of discount which is used by a manufacturer to provide benefit to…
Q: Kindness Company regularly buys sweaters and is allowed a trade discount of 20% and 10%. The entity…
A: Cost: It is the economic value of resources incurred by a firm to manufacture a product or render a…
Q: On June 1, 2022, Pitt Corp. sold merchandise with a list price of Php 5,000 to Burr on account. Pitt…
A: Trade discount is providing in series of discount at the time of sale. Cash discount will be 2℅ if…
Q: 2. On June 1, 2020, Pitt Company sold merchandise with a list price of P5,000,000 to Burr on…
A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…
Q: Merchandise with an invoice price of $10,000 is purchased subject to terms of 2/10, n/30, FOB…
A: Formula to Calculate net cost of Merchandise (Paid within the period):Net cost of merchandise =…
Q: If merchandise is sold on account to a customer for 1000 terms FOB shipping point, 1/10, n/30 and…
A: Discount on merchandise is given by the seller to buyer, when the seller repay the credit early or…
Q: Orange Co. sold Red Co. merchandise on account FOB shipping point, 2/10, net 30, for 10,000. Orange…
A: Cost of purchase of Inventory 10,000 Add: Shipping Charges 200 Total…
Q: GJ Office Supplies offers the following discounts: Trade discounts of 10% at list price and another…
A: Trade Discount=List price×Trade Discount=P 62,000×10%=P 6,200
Q: On January 1, a company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what…
A: Sales discounts: The merchandisers offer a reduction in sales price on initial sales, to accelerate…
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: 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: Shell Company purchased merchandise inventory with an invoice price of $4,000 and credit terms of…
A: Given Information : Invoice price of merchandise inventory purchased = $4,000 Credit terms = 2/10,…
Q: On March 1, ZCX company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what…
A: Lets discus basic things. Seller for the purpose of getting early payment from the buyer, gives the…
Q: Sara Company sold merchandise on credit with a list price of P105,000 and a trade discount of 10%.…
A: Trade discount = list price x trade discount rate = P105,000 x 10% = P10,500 Net sales = list price…
Q: A retailer purchases some merchandise with an invoice price of $19,700 and terms of sale of 5/15,…
A: Given: Price of the invoice = $ 19,700 Partial payment = $ 10,800 Sales term = 515,n45
Q: On January 1, 2021, Paul Corp sold merchandise with a list price of P100,000 to James on account.…
A: Trade discount is the discount which is available to all customers whether made cash payment or not.…
Q: On December 1, BCX company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30,…
A: The discount is given to the customers so as to receive payment from customers on the early basis.
Q: 22. On June 1, 2020, Penny Corp. sold merchandise with a list price of $40,000 to Linn on account.…
A: Invoice value of merchandise = $40,000 (1-0.30) (1-0.20) = $22,400
Q: Merchandise costing $2,000 is sold for $3,000 on terms 2/10, n/30. If the buyer pays within…
A: Net sales = Sales - Discount Gross profit = Net sales - Cost of goods sold
Q: On June 1, 2020, ABC Company sold merchandise with a list price of P50,000 to XYZ Company on…
A: Under FOB destination, Goods are taken into inventory costing when goods are delivered to the buyer…
Q: Willy Company sold on credit merchandise having a list price of P200,000 with the following terms:…
A: Solution: Price after trade discount = 200000*90%*95% = 171,000 Sales discount = 171000*3% = 5130…
Q: SumOne Limited is a retail store with a 30 June year-end. The company recorded the following: 2021…
A: The short-term provisions are referred to as the current liability which is expected to be settled…
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: How much is the accounts payable? • How much is the discount if paid in full within the discount…
A: The question pertains to discount allowed on timely payment. Whenever goods are sold on credit the…
Q: ABC Co. purchased merchandise with a list price of P90,000, subject to trade discounts of 20% and…
A: Solution: List price of merchandise = P90,000
Q: Merchandise with a list prike of P 20,000 was purchased under the terms 2/10, n/30 vith trade…
A: Purchase term: 2/10, n/30 means if payment is made within 10 days from Invoice date, a discount of…
Q: an invoice dated oct 15 shows list price of $82 for the merchandise plus $30 shipping and handling.…
A: Net purchase price = List price - trade discount = $82 - 82*20% = $65.60
Q: If merchandise is sold on account to a customer for $1,000, terms FOB shipping point, 1/10, n/30,…
A: Lets understand the basics. Seller for attracting early payment, gives the discount term to the…
Q: In the event of 12.12 Grand Sale, Agigas warehouse gave trade discounts 40%,10% and 2% to their shop…
A: Let the single discount equivalent to given trade discounts = d
Q: A company makes a credit sale of $1,000 on June 13 according to the payment terms 5/10, n/30. On…
A: Payment terms of 5/10, n/30 states that if the payment is made within 10 days then the buyer is…
Q: Assume that a company records purchases net of discount. If the company bought merchandise valued at…
A: Purchases are recorded net of discount which means Accounts payable will be recorded as net of…
Q: if merchandise is sold on account to a customer for 1,000 terms fob shipping point 1/10, n/30, and…
A: Discount for early payment is allowed when the customer pays off an amount in a given time period as…
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- If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the inventory for a full refund, and received an allowance for $65, how much discount would be applied if the customer remitted payment within the discount window?If a retailer purchased inventory in the amount of $750, terms 2/10, n/60, returned $30 of the inventory for a full refund, and received an allowance for $95, how much would the discount be if the retailer remitted payment within the discount window?If a retailer made a purchase in the amount of $350 with credit terms of 2/15, n/60. What would the retailer pay in cash if they received the discount?
- If a retailer purchased inventory in the amount of $680, terms 3/10, n/60, returned $120 of the inventory for a full refund, and received an allowance for $70, how much would the discount be if the retailer remitted payment within the discount window?A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays within the discount window, how much will they remit in cash to the retailer? A. $1,250 B. $1,200 C. $50 D. $500Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
- A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300. Shipping charges are $100. The terms of the sale are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the seller record for these transactions?Assume the following information: merchandise is sold on account to customer for P120,000, FOB Shipping Point, 2/10, n/30. The seller paid transportation cost of P6,000. What is the amount of remittance due within the discount period?Merchandise invoiced at $8,900 is sold on terms 1/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales?
- Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $20,100. What is the amount of sales discount allowable?if merchandise is sold on account to a customer for 1,000 terms fob shipping point 1/10, n/30, and the seller prepays $50 in freight, the amount of the discount for early payment would be?Merchandise costing $2,000 is sold for $3,000 on terms 2/30, n/60. If the customer pays within the discount period, what amount will be reported on the income statement as net sales and as gross profit? Net Sales Gross Profit