Company X sells on a 2/10, net 90, basis. Company Y buys goods with an invoice of $1,500.   a. How much can company Y deduct from the bill if it pays on day 10? (Do not round intermediate calculations. b How many extra days of credit can company Y receive if it passes up the cash discount? c  What is the effective annual rate of interest if Y pays on the due date rather than day 10? (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Q: alculate the APR and rEAR of non-free trade credit associated with credit terms of 3/25, net 85, and…

A: The term trade credit is a term used for short-term financing for buyers and it helps in improving…

Q: Kumi Ltd permits its customers to pay with a credit card or to receive a percentage discount ? for…

A: Given:

Q: 20. Problem Solving. ABC has an accounts receivable with a gross amount of P150,000 and 2% allowance…

A: Factoring of Accounts Receivable The decision which are taken for factoring accounts receivable to…

Q: A private enterprise sold some merchandise for $160,000 on January 1, 2020. The customer paid…

A: It is the current value of future sum of money to be received at specified interest rate

Q: What amount will reduce the amount due on an invoice of $2072.19 by $1220.41 if the terms of the…

A: A discount, whether expressed in terms of money or as a percentage, is a reduction in the regular…

Q: Firms usually offer their customers some form of trade credit. This allowance comes with certain…

A: True price of the invoice is the price after a discount of 1%. Answer: Option c. 1,530.32

Q: Company X sells on a 2/10, net 90, basis. Company Y buys goods with an invoice of $1,500. a. How…

A: Trade credit refers to the practice of businesses extending credit terms to their customers,…

Q: M&N Ltd sells security doors. Majority of its sales are on credit except small amount of cash sales…

A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…

Q: PGL Corporation has a credit sale of $ 240,000 in 2018. The company estimates that 9 % of its credit…

A: Bad debts expense: Bad debts expense is recognized in the books of the company when a debtor is…

Q: merchant receives an invoice for $8000 with terms 2/10, n/50. What is the maximum interest rate that…

A: Interest rate:The cost of borrowing money in a percentage is known as the interest rate. Interest…

Q: What amount will reduce the amount due on an invoice of $2650.12 by $1207.57 if the terms of the…

A: Discount is the amount that reduce the price of  goods sold and  that is given  by the seller to the…

Q: If the total Accounts Receivable of HAPPY ENTERPRISES is 560,000 and gives its customers a 5%…

A: Accounts Receivable means accounts of those customers to whom business has made credit sales on…

Q: First National Bank charges 13.4 percent compounded monthly on its business loans. First United Bank…

A: The effective annual rate (EAR) is the annual interest rate that takes into account the effect of…

Q: What is the EAR of the lower cost loan?

A: Effective Annual Rate = Interest paid / Funds availed for use Assume funds provided for loan is…

Q: 24) Metro Company sells lawn and garden products to wholesalers. The company’s fiscal year-end is…

A: The Periodic Inventory system is a system of inventory in which updates are made on periodic basis.…

Q: A store will give a 2.5% disount on the cost of purchase if you pay cash today. The payment is due…

A: Effective annual rate (EAR) is a measure of the true annual interest rate that takes into account…

Q: Assignment: Present entries to record the following for a business that uses the Allowance Method:…

A: Adjusting entries are the one which are prepared at the year-end to rectify the errors and omissions…

Q: None

A: Given: Inventory purchased on credit: R30,000Discounted price if paid within 10 days: R28,800Full…

Q: supplier hands you an invoice for $47,000 with the terms 4/20, net 180. a. ) What is the effective…

A: Equivalent Annual Cost -Businesses can utilize Equivalent Annual Cost (EAC) as a crucial tool to…

Q: A firm offers terms of 1/10, net 40. a. What effective annual interest rate does the firm earn when…

A: How frequently interest is compounded over a specific time period is taken into account by the…

Q: Newsome Inc. buys on terms of 4/10, net 45. It does not take the discount, and it generally pays…

A: Effective annual percentage = (1+[Discount rate/(1–Discount Rate)])^n– 1 Where n= No. of days in a…

Q: cent as needed

A: A trade discount is a percentage reduction in a manufacturer's asking price for merchandisers.

Q: PLEASE SHOW ALL WORK For terms of 8/10, n/60 determine the annual rate you, in effect, pay the…

A: Credit terms = 8/10 , n/60 means if payment is made within 10 days then supplier will offer 8%…

Q: Bob receives an invoice for $1,400.00. The terms of the invoice are 5/14 net 60. If he doesn't pay…

A: Formula for cost of credit=(Discount%/(1-Discount %) x (360/(Full allowed payment days - Discount…

Q: 1. How much is the trade discount? 2 When is the due date to pay the account? 3. What is the term of…

A: Trade discount is the discount which is received by the buyer on the goods which has been bought in…

Q: Cost of not taking a cash discount %

A: The cost of not taking a cash discount represents the additional expense incurred by a company when…

Q: 4. Estrada V. Escritor sells on terms 3/10, net 30. Total sales for the year are ₱2,539,130.  Forty…

A: Accounts receivables are those customer accounts to whom business has made credit sales on account…

Q: If a firm buys under terms of 3/15, net 30, but actually pays on the 20th day and still takes the…

A: Companies gives discount to the customers for early payments to customers but that is cost to…

Q: If a firm buys under terms of 1/15, net 40, but actually pays on the 20th day and still takes the…

A: 1/15, net 40 means that the supplier will give an additional discount of 1% to the buyer if the…

Q: Bramble Corp. sold $132000 of goods and accepted the customer's $132000 9%, 1-year note receivable…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Company X sells on a 2/15, net 60, basis. Company Y buys goods with an invoice of $4,500.   a. How…

A: Credit sales refer to the sale of goods where the buyer pays after receiving the goods. It is very…

Q: what is the annual interest rate cost (Use 360-day year)?

A: If the firm foregoes the cash discount offered then they would be paying higher for the goods. This…

Q: ms of sale of 3/25, net 50. Calculate the effective annual rate. a-1. Calculate the effective…

A: Ans a)Given Payment terms 3/25, net 50Periodic Rate=Discount%/(1-Discount%)Periodic rate…

Q: Little Kimi Clothiers can borrow from its bank at 18 percent to take a cash discount. The terms of…

A: The fee incurred when a buyer declines a seller's offer of a fast payment discount is known as the…

Q: 4. The total current amount due to a purchate made by using credit card is PS4,245.50. Based on the…

A: Here in this question, we are require to prepare credit card payment schedule. When any amount…

Q: When customers purchase goods on account, Spitz Manufacturing offers them a 2% reduction in the…

A: The objective of the question is to identify the correct accounting term for the scenario where…

Q: What amount will reduce the amount due on an invoice of $2555 73 by $1106 05 if the terms of the…

A: A discount of rate 1% will be given when the payment is made within the discount period. In the…

Q: 4. Estrada V. Escritor sells on terms 3/10, net 30. Total sales for the year are P2,539,130. Forty…

A: Accounts Receivables: Accounts receivables, shortened as AR or A/R, are legitimately enforceable…