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

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
Assume that you start with a balance of $3900 on your credit card.During the first month you charge $400. During the second month you charge $650 and make a payment of $280. Assume that your credit card charges a 29% APR and each month you make the minimum payment of 2.5% of the balance. Complete the following table. Round your answer to the nearest cent. Month 1 Previous balance- $3900 Finance charge- $94.25 Purchase- 400 Payment ?97.50 New balance? Month 2 Previous balance- finance charge- purchase- payments- New balance
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.)
Directions: 1. At the beginning of the month, you have a balance due of $3,000 and plan to pay off $200 a month while making additional purchases of $115 each month. 2. Use the interest of 18% and an annual fee of $49 to complete the repayment chart below. Interest Rate: 18% (APR); 1.5% monthly Annual Fee: $49 Month Balance Payments Purchases Interest and Interest and Fee (Month) Fee (Total) 1 $3,000 $200 $115 $49 $45 $94 $3,009 $2,969.14 $200 $115 $45.14 $139.14 5 6. 7. 8. 9. 10 11 12 Month #2 (Model): $3,000 (Balance) - $200 (Payment) + $115 (Purchases) + $49 (Annual Fee) + $45 (Monthly Interest Payment) = $3,009 Month #3 (Model): $3,009 (Balance) - $200 (Payment) + $115 (Purchases) + $45.14 (Interest) = $2,969.14 Month #4 Month #5 Month #6 Month #7 Month #8 Month #9 Month #10 Month #11 Month #12 Summary: What can you do as a wise consumer to avoid this debt in the first place or to pay it off quickly if you make mistakes and end up in a similar situation?
A bill for a motorboat specifies the cost as P1, 200 due at the end of 100 days but offers a 4% discount for cash in 30 days. What is the highest rate, simple interest at which the buyer can afford to borrow money in order to take advantage of the discount? Ans. r = 21.4%
An investor takes a loan for $40,000 to purchase inventory to start a business. The terms of the investor's loan state that the interest rate is 12%, interest is compounded monthly, and payments will be made in 12 equal end of month payments. How much would each payment be, and how much would the investor need to pay in month 7 to pay off the loan? Click here to access the TVM Factor Table calculator. Monthly payment - $ Payoff amount in month 7 = $
You wish to finance the purchase of a boat home for $38,300. A finance company offers an APR of 10.5% on a 24-month installment loan. After using Table 13-1 from your text to find the finance charge, calculate the monthly payment. O $1,184.11 $1,244.86 $1,776.16 O $1,867.28
A payday loan company charges a $25 fee for a $550 payday loan that will be repaid in 17 days. Treating the fee as interest paid, what is the equivalent annual interest rate? % interest Round to the nearest percent. This will be over 100% Submit Question Search hp
A lending company advertises that for a fee of P10, you can immediately borrow up to P200 for one month.If a person accepts the offer, what is the nominal interest rate per year? O a. 60% O b. 6% O c. 50% O d. 5%
Please help
You owe $1,032.56 on a credit card with an 11.25% APR. The minimum due is $150.00. What is the difference in the interest accrued if you pay the minimum amount due at the beginning of the month versus at the end of the month? Using the credit card information from above, you decide to pay $300.00 instead of $150.00 at the beginning of the month. How much do you save in interest by doubling the amount?

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