4 PTS Bennett Supplies has received an invoice totaling$50,000 with payment terms of 3/10, net 45. Thismeans the buyer can avail a 3% discount if theinvoice is paid within 10 days; otherwise, the fullamount is due in 45 days. How much does the buyersave if the bill is paid within the discount period?a. $0b. $1,500c. $2,000d. $2,500

Explanation of Payment Terms (3/10, net 45): Payment terms represent the conditions under which a…

Answered: Bennett Supplies has received an…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 11RE

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Similar questions

A merchant sells a product on credit for S/ 50,000 and offers to pay it to a client in three bills of equal nominal value and with maturities at 45, 75 and 105 days respectively, applying on them an APR of 30% with bimonthly capitalization. If this merchant plans to discount the bills in a bank 15 days after the sale is made, being the effective discount rate 2% per month, find: 1. The face value of the bills.2. The net cash value received on discounting the bills.3. Calculate the discount.
Which one of the following statements is correct if you purchase an item with credit terms of 3/15, net 45? Multiple Choice One-third of your purchase is due in 15 days and the rest is due in 45 days. If you pay within 15 days, you will receive a discount of 3 percent. If you pay within 3 days, you will receive a discount of 15 percent. If you do not pay within 15 days, you will be charged Interest at a rate of 3 percent per month. If you pay 3 percent of your purchases within 15 days, you will have 45 days to pay for the remainder.
A supplier grants credit terms of 1/5, net 30. What is the effective annual rate of the discount on a purchase of $5,000?
One of your customers has just made a purchase in the amount of $28,000. You have agreed to payments of $590per month and will charge a monthly interest rate of 1.44 percent. How many months will it take for the account to bepaid off?Multiple Choicea. 75.08 monthsB. 86.63 months C. 80.44 monthsD. 47.46 monthsE. 36.43 months
A $10,000 credit supply has the following terms: trade terms are 5/5 net 50, interest rate 8%. What is the amount to pay if the buyer will take the discount and pay on the 5th day of the invoice? A. -14.234 B. -14,250 C. -14.260 D. -14,230
The original price of a Honda Shadow to the dealer was $17,045, but the dealer will pay only $16,335 after rebate. If the dealer pays Honda within 15 days, there is a 1% cash discount. a. How much is the rebate? Amount of rebate b. What percent is the rebate? Note: Round your answer to the nearest hundredth percent. Percentage of rebate % c. What is the amount of the cash discount if the dealer pays within 15 days? Note: Round your answer to the nearest cent. Amount of cash discount
please quickluy , thanks 27. Caterpillar purchased merchandise from Alpha echnologies as follows: Invoice date: March 12th Invoice Amount: $4,000 Terms: 2/10, n/30 If we assume an annual interest rage of 6% and a 360-day year. And Caterpillar has to borrow money for the remaining 20 days of the credit period. How much are the savings from taking the discount? A.19.6 B.66.93 C.13.07 D.6.67
A store will give you a 4.50% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
A store will give you a 3.75% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who chose to defer payment for the month?
A store will give you a 1.00% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month? Note: Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Effective annual rate %
Find the discount and proceeds on a $3,250 face-value note for nine months if the discount rate is 9.2%. (Use the banker's rule.) Question content area bottom The discount is ???(Round to the nearest cent as needed.) Part 2 The proceeds are ???(Round to the nearest cent as needed.)
What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? OA. Interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice. OB. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. OC. A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. OD. Interest of 10 percent will be charged if invoice is paid after two days.

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