How much were the discounts lost? Hepson Company is specializing on sale of printers and related gadgets, including ink cartridges. Theirlines of merchandise include all brands, whether high-end or low-end product, catering to both individualand institutional users of the products. During the year, selected transactions relating to its purchasesfollow:Purchases of Bro printers from Metro Pacific CompanyPurchases of Howlet printers from Ayaling CorporationPurchases of ink cartridges from Metro Pacific CompanyP 836,000524,500180,000Terms of Metro Pacific Company and Ayaling Corporation are as follows:Metro Pacific Company – 3/10, net30Ayaling Corporation - 2/10, n/30During the year, the company received credit memoranda for defective merchandise returned as follows:(All returns and allowances took place within five days of purchases and prior to any payment of account)Metro Pacific CompanyAyaling Corporation52,00028,500Total cash discounts taken during the year amounted to P22,180.

Solution Concept Discount term 3/10 net 30 means that if the payment is made within 10 days of…

es of merchandise include all brands, whether high-end or low-end product, catering to both ind nd institutional users of the products. During the year, selected transactions relating to its purcha low: urchases of Bro printers from Metro Pacific Company urchases of Howlet printers from Ayaling Corporation urchases of ink cartridges from Metro Pacific Company erms of Metro Pacific Company and Ayaling Corporation are as follows: etro Pacific Company- 3/10, net/30 yaling Corporation-2/10, n/30 uring the year, the company received credit memoranda for defective merchandise returned as ll returns and allowances took place within five days of purchases and prior to any payment of a etro Pacific Company yaling Corporation otal cash discounts taken during the year amounted to P22,180.

es of merchandise include all brands, whether high-end or low-end product, catering to both ind nd institutional users of the products. During the year, selected transactions relating to its purcha low: urchases of Bro printers from Metro Pacific Company urchases of Howlet printers from Ayaling Corporation urchases of ink cartridges from Metro Pacific Company erms of Metro Pacific Company and Ayaling Corporation are as follows: etro Pacific Company- 3/10, net/30 yaling Corporation-2/10, n/30 uring the year, the company received credit memoranda for defective merchandise returned as ll returns and allowances took place within five days of purchases and prior to any payment of a etro Pacific Company yaling Corporation otal cash discounts taken during the year amounted to P22,180.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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