How much will the Christopher Corporation have to pay for the merchandise if it pays on September 3? Purchase terms of 2/10, n/30 mean the Christopher Corporation will be allowed a 2% purchase discount if the merchandise is paid for within 10 days. If the bill is paid on September 3, which is not within 10 days of the purchase, full $50,000 will have to be paid.

Q: A retailer owes a wholesaler $700,000 due in 45 days. If the payment is 15 days late, there is a 1%…

A: Part (a): Calculation of interest amount: Answer: 45 day certificate interest is $7,000 65 day…

Q: A store will give you a 4.50% discount on the cost of your purchase if you pay cash today.…

A: The implicit rate of borrowing is the cost paid in the terms of discount by the customer if the…

Q: On average, how much “free” trade credit does the firm receive during the year?

A: Free trade credit refers to the payment made by a firm within the discount period whereas when the…

Q: A store will give you a 3% discount on the cost of your purchase if you pay cash today. Otherwise,…

A: Customers who choose to defer payment for the month will be letting go of the discount that they…

Q: Company X sells on a 3/10, net 90, basis. Company Y buys goods with an invoice of $2,500. a. How…

A: Calculation of Deduction Amount, Extra Credit Days and Effective Annual Rate: Excel Spreadsheet:…

Q: A buyer received an invoice for P 60,000, inclusive of 12% VAT dated October 2. If the terms are…

A: Formula: Amount paid = Total Invoice amount - Discount amount.

Q: GFB Co. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 30…

A: Free Trade credit refers to a type of financing wherein the buyer gets a credit period of…

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: Your company has been offered credit terms on its purchases of 4/30, net 90 days. What will be the…

A: The an agreement to purchase products and/or services on credit rather than making immediate cash or…

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

A: Given values: Invoice value = $ 1500 if paid within 10 days discount = 2% with in 90 days it should…

Q: ABC Company sold 10 units of goods with a total list price of P30,000 on Jan. 1, 2019. Given that…

A: List price = P 30,000 Trade discount = 5% Cash discount = 10% Discount period = 10 Days Period…

Q: c. What is the effective annual rate of interest if Y pays on the due date rather than day 15? (Use…

A: Given, Invoice amount=$ 1,500 1/15, net 60, basis which means if company y pays within 15 days then…

Q: 1. Riverbed Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020.…

A: PLEASE LIKE THE ANSWER  Note:   “Since you have asked multiple question, we will solve the first…

Q: A company buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 35…

A: Nominal Annual Cost = Discount percent(100-Discount percent) × 365 daysTotal Pay period - Discount…

Q: What is the implicit borrowing rate being paid by customers who choose to defer payment for the…

A: Information Provided: Discount rate = 4.75% Amount due (time) = In 1 month

Q: GJ Office Supplies offers the following discounts: Trade discounts of 10% at list price and another…

A: Trade Discount=List price×Trade Discount=P 62,000×10%=P 6,200

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: Yesterday, Smiley Company sold $22,500 of merchandise on credit. The invoice was sent today with the…

A: Here, Value of Sales is $22,500 The discount term is 3/10 net 40 Therefore, Discount Rate is 3% if…

Q: A store will give you a 2.75% discount on the cost of your purchase if you pay cash today.…

A: Given: Discount rate is 2.75%

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: Black Panther Inc. buys on terms of 2/15, net 60 days. It does not take discounts, and it typically…

A: Net purchases = P450,000 Terms of credit = 2/15,net 60 days

Q: A store will give you a 2.25% discount on the cost of your purchase if you pay cash today.…

A: The implicit borrowing rate refers to the rate that is applied to the customers for extending credit…

Q: 6. During 2019, Reed Corporation sold merchandise for a total of $900,000. The cost of merchandise…

A: A sales discount represents a reduction, not in the selling price of the product or service, but in…

Q: ABC Company sold 10 units of goods with a unit list price of P2,000 on January 1, 2020. Given that…

A: The period given to avail cash discount is 10 days.  Thus 10 days is expired on January 10th. Thus…

Q: A store will give you a  3.75% discount on the cost of your purchase if you pay cash today.…

A: Monthly rate is calculated below:

Q: Black Panther Inc. buys on terms of 2/15, net 60 days. It does not take discounts, and it typically…

A: Credit terms indicate the percentage discount a firm can take off the invoice amount if payments…

Q: A supplier offers the following discounts: Trade discounts of 20% at list price and another cash of…

A: The amount paid after discount is calculated as difference between total invoice price and discount…

Q: When is the last day the buyer can get the cash discount?    If the buyer decides to pay for the…

A: 1. The Buyer can discount till 10 days from billing date. Billing Date = June 4 Last day the buyer…

Q: Atlanta Cement, Inc. buys on terms of 2/15, net 30. It does not take discounts, and it typically…

A: Annual percentage rate: The term annual percentage rate (APR) is also known as the nominal annual…

Q: Company X sells on a 2/15, net 90, basis. Company Y buys goods with an invoice of $1,000.   a. How…

A: Credit sale term =2/15, net 90 Company Y buys goods of =$1000 Meaning of 2/15, net 90: It means if…