Activity 2: On November 5, of the current year, Ligaya Merchandising Enterprise purchased merchandise with the list price of P120,000. The merchandise is subject to a treade discount of 15%, 10%, 5% with credit terms of 3/10, n/30. (Ligaya Merchandising Enterprise is a non-VAT registered business) Required: Answer the following questions based from the above data. 1. How much is the invoice price? 2. At what amount should Ligaya Merchandising Enterprise debit Purchases? 3. How much is the trade discount?
Activity 2: On November 5, of the current year, Ligaya Merchandising Enterprise purchased merchandise with the list price of P120,000. The merchandise is subject to a treade discount of 15%, 10%, 5% with credit terms of 3/10, n/30. (Ligaya Merchandising Enterprise is a non-VAT registered business) Required: Answer the following questions based from the above data. 1. How much is the invoice price? 2. At what amount should Ligaya Merchandising Enterprise debit Purchases? 3. How much is the trade discount?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Activity 2:
On November 5, of the current year, Ligaya Merchandising Enterprise purchased merchandise with the list
price of P120,000. The merchandise is subject to a treade discount of 15%, 10%, 5% with credit terms of
3/10, n/30. (Ligaya Merchandising Enterprise is a non-VAT registered business)
Required: Answer the following questions based from the above data.
1
How much is the invoice price?
2.
At what amount should Ligaya Merchandising Enterprise debit Purchases?
3.
How much is the trade discount?
4
How much is the cash discount?
5.
Up to what date is the discount period?
6.
If Ligaya Merchandising make payment on November 15, how much should
it pay in full settlement of its account?
7. If payment is made on November 20, how much should Ligaya pay in full
settlement of its November 5, account?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8355d675-eecd-4ae7-a90c-ad141bb786d8%2F864a18cd-91ca-4b65-90c8-713ce05eed5f%2Fps5lo2r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Activity 2:
On November 5, of the current year, Ligaya Merchandising Enterprise purchased merchandise with the list
price of P120,000. The merchandise is subject to a treade discount of 15%, 10%, 5% with credit terms of
3/10, n/30. (Ligaya Merchandising Enterprise is a non-VAT registered business)
Required: Answer the following questions based from the above data.
1
How much is the invoice price?
2.
At what amount should Ligaya Merchandising Enterprise debit Purchases?
3.
How much is the trade discount?
4
How much is the cash discount?
5.
Up to what date is the discount period?
6.
If Ligaya Merchandising make payment on November 15, how much should
it pay in full settlement of its account?
7. If payment is made on November 20, how much should Ligaya pay in full
settlement of its November 5, account?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education