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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Please do not give image format Kline Goods purchases merchandise with a catalog list price of $45,000. The retailer receives a 25% trade discount and credit terms of 2/10, n/30. What amount should Kline debit to the Merchandise Inventory account? none of the above $33,075 $23,750 $33,525
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?
Apple Co sells merchandise on credit to Zea Co in the amount of P8,000. The invoice is dated on September 15 with terms of 1/15, net 45. What is the amount of the discount and up to what date must the invoice be paid in order for the buyer to take advantage of the discount? P160, September 25P80, September 25P80, September 30P160, September 30
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
Qc 1
please send correct answer Q2
On March 10, FDN Trading sold merchandise with a list price of $337,000 less 10-5, on terms 2/10, n/30. How much was the invoice price of the merchandise? ↓y ess
2
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
A retailer obtains a 21% retail discount, a 15% wholesale discount and 5% volume discount. The retailer pays $470 after discounts. What is the net price?
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
what is the total price of the first invoice that activates the chain discount?

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