FDN Trading sold merchandise on credit to ABC Co in the amount of P64,000. The invoice is dated on November 1 with terms of 1/15, net 45. ABC Co returned defective goods worth P10,000. A partial payment of P16,000 was made by ABC Co. How much is the cash discount if the invoice is paid in order for ABC Co to take advantage of the discount?
FDN Trading sold merchandise on credit to ABC Co in the amount of P64,000. The invoice is dated on November 1 with terms of 1/15, net 45. ABC Co returned defective goods worth P10,000. A partial payment of P16,000 was made by ABC Co. How much is the cash discount if the invoice is paid in order for ABC Co to take advantage of the discount?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. FDN Trading sold merchandise on credit to ABC Co in the amount of P64,000. The invoice is dated on November 1 with terms of 1/15, net 45. ABC Co returned defective goods worth P10,000. A partial payment of P16,000 was made by ABC Co. How much is the cash discount if the invoice is paid in order for ABC Co to take advantage of the discount?
2. During the period, FDN Trading issued another promissory note for an additional loan of P67,000 and made total payments of P72,000. At the end of the period, FDN Trading’s notes payable had a balance of P190,000. How much is the beginning balance of the notes payable?
3. FDN Accounting Services purchased office supplies for P31,000 on terms 20% down payment and the balance 2/10 n/30. How much is the increase in the total assets of the business?
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