JJ Company purchased on account merchandise with a list price of $10,000. Payment terms were 1/15, n/45. If payment occurs before the discount expires, what is the effect of the purchase discount on the Multiple Choice Increases accounts payable Decreases accounts receivable Increases cash Decreases inventory

JJ Company purchased on account merchandise with a list price of $10,000. Payment terms were 1/15, n/45. If payment occurs before the discount expires, what is the effect of the purchase discount on the Multiple Choice Increases accounts payable Decreases accounts receivable Increases cash Decreases inventory

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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Sales Transactions Journalize the following merchandise transactions: a. Sold merchandise on account, $23,950 with terms 2/10, n/30. The cost of the merchandise sold was $14,370. If an amount box does not require an entry, leave it blank. Sale Accounts Receivable Sales Cost Cost of Merchandise Sold Merchandise Inventory b. Received payment less the discount. If an amount box does not require an entry, leave it blank. Cash Accounts Receivable c. Issued a $1,100 credit memo for damaged merchandise. The customer agreed to keep the merchandise. If an amount box does not require an entry, leave it blank. Customer Refunds Payable Accounts Receivable
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1. Merchandise with a list price of $7,425 is purchased on account, terms FOB shipping point, n/30. The seller prepaid transportation costs of $300. Prior to payment, $1,000 of the merchandise is returned. The correct amount is paid within the discount period.(net method) Record the foregoing transactions of the buyer in the sequence indicated below. a) Purchased the merchandise b) Recorded receipt of the credit memorandum for merchandise returned. c) Paid the amount owed.
Purchase merchandise for resale $4,000 terms 4/10, n/30 on account. How much would the payment be made for assuming that the buyer took advantage of the discount.
Calculate the missing information for the purchase. Item SellingPrice(in $) SalesTaxRate SalesTax(in $) ExciseTax Rate ExciseTax TotalPurchase Price Book $ 8 $ 0 0 $19.44
A. Sold merchandise on account, $11,500 with terms 2/10, net 30. The cost of the merchandise sold was $7,800. B. Received payment less the discount.
XYZ Company purchased inventory worth $10,000 on credit with terms of 2/10, net 30. The company pays the invoice within the discount period. Calculate the amount paid and the cost of inventory if the company takes the discount.
Direction: Complete the Table. Compute what is asked for. Give the exact amount. Use PESO SIGN. NO DECIMAL PLACES. ROUND-OFF Nearest peso. If your answer is NONE OR ZERO, PUT a 0 on the space. Name of Buyer Cost of Merchandise Trade Discount Cash Discount Date of Purchase Date Paid Returns made after 5 days purchase FOB Freight Charges Freight charges paid by Name of Buyer Trade discount, if any Invoice Price (before any reams) Purchase discount to be recorded upon payment Amount of Cash (payment) to be credited Company Aster 320,000 12% 1/10, n/eom 15-March-10 21-March-10 21,000 Shipping point 4,100 Buyer Company Aster A B C D Company Bougainvillea 65,000 5%,3%,2% 2/eom.n/45 15-Mar-10 25-Mar-10 3,100.00 Shipping point 1,200.00 Buyer Company Bougainvillea E F G T H Company Calabachi 105,000 1/15,2/10, n/eom 15-Mar-10 27-Mar-10 Destination 2,500.00 Seller Company Calabachi I J K L Company Daisy 25,300 P500 discount for every P5,000 purchased 15-Mar-10 16-Mar-10 Destination 1,100 Seller…
Purchases Transactions Barans Company purchased merchandise on account from Springhill Company for $12,400, terms 1/10, n/30. Barans returned merchandise with an invoice amount of $1,900 and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar.
Journalize each of the transactions In assuming a perlodic inventory system and PST at 7% along with 5% GST. Note: Any avallable cash discount is taken only on the sale price before taxes. Aug. 1 Purchased $2, 000 of merchandise for cash. 2 Purchased $6,800 of merchandise; terms 2/18, n/30. 5 Sold merchandise costing $3,690 for $5,200; terms 1/18, n/30. 12 Paid for the merchandise purchased on August 2. 15 Collected the amount owing from the customer of August 5. 17 Purchased $6,009 of merchandise; terms n/15. 19 Recorded $7,800 of cash sales (cost of sales $5,800). View transaction list Journal entry worksheet 3 4 5 6 7 > 1 2 Record the cash purchase. Note: Enter debits before credits. Date General Journal Debit Credit Aug. 01