Accounting for Purchase DiscountsKen Company purchased $7,000 of merchandise from Marilyn Company with terms of 4/10, n/45.What percent discount will Ken Company get if it pays within the allowed discount period?9%If Ken Company fails to pay within the discount period, how many days does Ken Company have from the date of purchase before the payment is considered to be late?days

Discount Period-:A Discount Period is the proportion of time a money discount is usable for a buyer…

Answered: Accounting for Purchase Discounts Ken…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Invoice amount of $28,700 on June 25 Partial Payment made on July 20th of 6,000 Return goods of $650 Terms are 4/20, 3/30, n/60 What is the net amount due if the company send a partial payment of $6000 on the 20th What is the net date? If the manufacturer charges a 4 1/2% late fee , What would the company owe if it did not pay the balance by the net date? Round to the nearest cent.
Opulent Outfits procures inventory for $15,800 with terms 4/20, n/60. After the purchase, the company returns $4,000 worth of the inventory to the supplier and receives an allowance for defective items totaling $180. The entire amount due is settled within the discount period. What is the amount of the discount that will be taken? $380 $297 $304.40 $237
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XYZ Company purchased inventory worth $10,000 on credit with terms of 2/10, net 30. The company pays the invoice within the discount period. Calculate the amount paid and the cost of inventory if the company takes the discount.
On March 5 PV Inc purchased $3,300 worth of merchandise from Panther Supply with the terms 2/10,n/30 On March 14, PV Inc paid Panther Supply the amount owed less the discount. Show the journal entry for March 5 and March 14
Brian Burns uses perpetual inventory system and LIFO All credit sales discounts are recorded using the net method – customers receive a 3 percent discount if they pay within 30 days. Purchase discounts are recorded using the net method All depreciation is straight line. Additional Information for Journal Entries Brian Burns records accruals for utilities expense as an adjusting journal entry at the end of each year. They pay utilities once a year on January 31st for the prior year. NOTE: There is no payment for utilities on January 31st of 2022 because January 1 of 2022 is the first day of operations. January 1 Sold 10,000 shares of common stock for $95 per share. Borrowed $2,000,000 at 8 percent with interest payable semi-annually (on July 1 and January 1). Purchased 1,000 units of inventory at $150 a piece on credit from Biggie Smalls Inc. Terms are 2/10; n/60 Paid $480,000 for 2 years of rent in advance…
On September 1, ABC Company bought goods with a list price of $20,000 terms 2/10, n/30. On On September 5, ABC Company returned goods with a list price of $2,500 for credit. On September 9, ABC Company made a payment for their inventory purchase. How much did ABC Company pay for the inventory? $17,500 $19,600 $20,000 $17,150
Fill in the blanks: Problem: On December 31, Mr. Adrian sold equipment amounting to P640,000 with a trade discount of 6%, 1%, and term of sales of 2/45, n/60. Mr. Adrian pay the shipper of the shipping costs up to the buyer's warehouse. 1. How much is the invoice price? 2. When is the due date to avail the 2% discount? 3. What is the term of shipment? Choose if. FOB Shipping Point - Freight Collect, FOB Shipping Point - Freight Prepaid, FOB Destination - Freight Prepaid, FOB Destination - Freight Collect INSTRUCTIONS: 1. DO NOT ABBREVIATE THE MONTH OF YOUR ANSWER. IF YOUR ANSWER IS SEPTEMBER, ENCODE IT AS SEPTEMBER. 2. DO NOT USE COMMA AND PESO SIGN. IF YOUR ANSWER IS P1,000.50, ENCODE IT AS 1000.50 3. USE TWO DECIMAL PLACES FOR YOUR ANSWER. IF YOUR ANSWER IS P22,785, ENCODE IT AS 22785.00
14/On 12th January 2018, Megamart company grants an allowance to a Max traders, a customer of RO 2,600 for the goods sold. Assume that the customer took 3% discount and record the journal entry for the cash payment of the allowance in the books of seller under periodic inventory system? a. Account receivable RO 2,600 Dr / Sales discount RO 72 Cr / Cash RO 2,522 Cr b. Sales returns and allowances RO 2,600 Dr /Sales discount RO 78 Cr / Cash 2,522 Cr c. Cash RO 2,600 Dr / Sales returns and allowances RO 2,600 Cr d. Sales returns and allowances RO 2,600 Dr / Cash RO 2,600 Cr
isaac co.sells merchandise on credit to sonar co. in the amount of9,600 the invoice is dated on april 15 with terms of 1/15 ,net 45 if sonar co chooses not to take the discount by when should the payment be made
Brian Burns uses perpetual inventory system and LIFO All credit sales discounts are recorded using the net method – customers receive a 3 percent discount if they pay within 30 days. Purchase discounts are recorded using the net method All depreciation is straight line. Additional Information for Journal Entries Brian Burns records accruals for utilities expense as an adjusting journal entry at the end of each year. They pay utilities once a year on January 31st for the prior year. NOTE: There is no payment for utilities on January 31st of 2022 because January 1 of 2022 is the first day of operations. January 1 Sold 10,000 shares of common stock for $95 per share. Borrowed $2,000,000 at 8 percent with interest payable semi-annually (on July 1 and January 1). Purchased 1,000 units of inventory at $150 a piece on credit from Biggie Smalls Inc. Terms are 2/10; n/60 Paid $480,000 for 2 years of rent in advance…

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