Corporation specializes in the sale of printing

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...
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6. Gross and Net Method. Ace Corporation specializes in the sale of printing
machine. It had the following transactions with one of its suppliers:
Purchases of machines
P3,400,000
Purchase return and allowances
100,000
Purchase discounts taken
34,000
Purchases were made throughout the year on terms 2/10, n/30. All returns
and allowances took place within 7 days of purchase and prior to any payment
on account.
How much is purchase discount lost?
Transcribed Image Text:6. Gross and Net Method. Ace Corporation specializes in the sale of printing machine. It had the following transactions with one of its suppliers: Purchases of machines P3,400,000 Purchase return and allowances 100,000 Purchase discounts taken 34,000 Purchases were made throughout the year on terms 2/10, n/30. All returns and allowances took place within 7 days of purchase and prior to any payment on account. How much is purchase discount lost?
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