Merchandise with an invoice price of $6,000 is purchased subject to terms of 3/10, n/30, and FOB destination. Transportation costs paid by the seller totalled $200. What is the cost of the merchandise, assuming the discount is taken? A. $6,000 B. $5,820 C. $6,020 D. $5,800

Merchandise with an invoice price of $6,000 is purchased subject to terms of 3/10, n/30, and FOB destination. Transportation costs paid by the seller totalled $200. What is the cost of the merchandise, assuming the discount is taken? A. $6,000 B. $5,820 C. $6,020 D. $5,800

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 17Q: A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300....

See similar textbooks

Related questions

Q: Need help

A: Step 1: Definition of DepreciationDepreciation is the process of allocating the cost of a tangible…

Q: What is the result of this exchange on these financial accounting question?

A: Step 1: Define Gain or Loss on Exchange with Commercial SubstanceWhen an asset exchange has…

Q: What is the fixed cost per month ?

A: Given:Highest total cost (June) = $120,000Lowest total cost (December) = $82,000Highest production…

Q: Need help with this question solution general accounting

A: Step 1: Definition of Patent AccountThe patent account is used to record the cost of acquiring a…

Q: What is the operating income using variable costing on these general accounting question?

A: Step 1: Define Variable Costing Operating IncomeVariable Costing Operating Income is the profit…

Q: Please given answer general accounting

A: Step 1: Write the DuPont formulaStep 2: Substitute the given values for Profit Margin, Total Asset…

Q: general account

A: Gross profit is calculated as revenue minus the cost of goods sold (COGS) and does not take into…

Q: What is the return on equity for Firm X and Firm Y ?

A: The question requires the determination of the ROE. Return on Equity (ROE) is a measure of a…

Q: Atlas Corporation has forecasted sales of $4,000 in January, $5,500 in February, and $7,000 in…

A: Explanation of Credit Sales: Credit sales means customers can pay later rather than immediately at…

Q: Provide answer general accounting

A: Step 1: Definition of EquityEquity is the residual interest in a company's assets after deducting…

Q: KN Enterprises produces a single part for sale. The part sells for $19 per unit. Fixed costs are…

A: Profit Before Taxes = (Sales Revenue − Total Variable Costs) − Fixed Costs2,350,000 = ((19 x 640,000…

Q: What is the company's return on investment

A: To calculate the company's Return on Investment (ROI), we use the formula:ROI= Net Income…

Q: Bradshaw Corporation has beginning work in process inventory of $200,000 and total manufacturing…

A: Explanation of Work in Process (WIP) Inventory:Work in process inventory represents the value of…

Q: Tutor provide correct answer

A: The sustainable growth rate (SGR) can be calculated using the formula:SGR=ROE×(1−Dividend Payout…

Q: General accounting

A: The relative P/E ratio is a measure that compares a company's price-to-earnings (P/E) ratio to a…

Q: Raw material purchased during the year amount to:

A: To find the amount of raw materials purchased, we can use the following formula: Raw Materials Used…

Q: Which feature distinguishes nominal accounts from real accounts in closing entries? Options: (i)…

A: Detailed Explanation:• A company uses Nominal accounts to track Revenue Expenses and Withdrawals…

Q: Mason corporation

Q: Please provide correct solution for this general accounting question

A: Step 1: Define Applied OverheadApplied Overhead refers to the estimated amount of manufacturing…

Q: What will be the firm's operating cycle on these financial accounting question?

A: Step 1: Define Operating CycleThe Operating Cycle measures the time it takes for a company to…

Q: Problem 3-5B Applying the accounting cycle P1 P3 P4 P5 P6 On July 1, Lula Plume created a new…

A: Step 4: Adjusting EntriesHere are the adjustments based on the instructions:Prepaid insurance…

Q: Newman Corporation sells one product, its waterproof hiking boot. It began operations in the current…

A: Concept of Absorption Costing:Absorption costing is a method of accounting where all manufacturing…

Q: What is the corporation's tax liability on these financial accounting question?

A: Step 1: Define Tax LiabilityThe Tax Liability is the total tax payable on a corporation's taxable…

Q: Brookfield s net income for September is?

A: Explanation of Revenue: Revenue represents the total amount of money a business earns from its…

Q: I need help with this solution for accounting

A: Step 1: Define Tax-ShieldFirms use the tax-shield amount to save money by acquiring tax returns on…

Q: Correct Answer

A: Concept of Accounting Performance:Accounting performance refers to the financial evaluation of a…

Q: Step by step answer

A: Explanation of Normal Cost System: This is a costing method where actual costs are used for direct…

Q: The ending balance of cash on hand for January.

A: Starting Cash Balance:The company began operations on January 1 with $100,000 in cash.Sales on…

Q: Correct Answer

A: Correct Option: Operational synchronization enhances period matchingBusiness Cycle Alignment:When…

Q: What is the cost of goods sold by hodges department store?

A: Step 1: Definition of Cost of Goods Sold (COGS)Cost of Goods Sold (COGS) refers to the direct costs…

Q: ??!!

A: Part (a):Calculation of Predetermined Overhead Rate for the Operating RoomPredetermined Overhead…

Q: None

A: a. Rate on Stockholders' Equity• Step 1: Identify the Net Income and Average Stockholders' Equity•…

Q: Kindly help me with accounting questions

A: To calculate the Cost of Goods Sold (COGS), we can use the following formula: COGS = Beginning…

Q: What was it's ROE ? General accounting

A: The formula for Return on Equity (ROE) is: ROE = (Net Income / Total Common Equity) × 100 Given:Net…

Q: General Accounting Question get solution

A: Step 1: Define Activity Rate Activity rate is the allocation rate used to assign overhead costs to…

Q: What differentiates process-based validation from outcome testing? (A) Systematic review steps…

A: In health science and quality management, process-based validation and outcome testing are two…

Q: What was the firm's cash flow to creditors during 2021 ?

A: To calculate the cash flow to creditors, use the formula:Cash Flow to Creditors = Interest Paid -…

Q: None

A: To solve this, we can use the formula for the current stock price based on future dividends and…

Q: Janet Foster bought a computer and printer at Computerland. The printer had a $860 list price with a…

A: The trade discount on the printer is $100. So, the cost of the printer after the trade discount is…

Q: Which of the following choice is the correct status of manufacturing overhead at year end ?.

A: To determine the status of manufacturing overhead, we need to calculate the applied overhead and…

Q: Crown Enterprises acquired a trademark on June 1, 2020. Crown paid cash of $58,000 to the seller.…

A: Explanation of Trademark Account: The trademark account records the costs associated with acquiring,…

Q: Compute the percentage of total return?

A: 1. Calculate the capital gain:Capital Gain = Ending Price - Initial PriceCapital Gain = $102 -…

Q: Why does sustainability integration affect measurement choices? (1) Integration creates problems (2)…

A: Sustainability integration affects measurement choices because it introduces new…

Q: General accounting

A: To determine the expected stock price of Nextech Corp immediately after it pays the dividend in one…

Q: Colton Inc. is a merchandising company. Last month, the company's cost of goods sold was $85,600.…

A: To calculate the total merchandise purchases for the month, you can use the formula: Merchandise…

Q: ??!!

A: To calculate the sustainable growth rate (SGR), we use the formula: SGR =ROE ×(1 −Dividend Payout…

Q: Please provide answer

A: Explanation of Total Liabilities: Total liabilities represent all debts and obligations a company…

Q: D-Mart reported a net income of $19,500 for the previous year. At the beginning of the year, the…

A: Concept of Net Income: Net income represents the profit a company earns after deducting all…

Q: General accounting

A: Step 1: Definition of Operating IncomeOperating income represents the profit a company makes from…

Q: Please give me true answer this financial accounting question

A: To calculate the after-tax return on the preferred stock, we need to account for the tax impact and…

Question

What is the coat of the merchandise assuming the discount is taken on these financial accounting question?

Merchandise with an invoice price of $6,000 is purchased
subject to terms of 3/10, n/30, and FOB destination.
Transportation costs paid by the seller totalled $200.
What is the cost of the merchandise, assuming the
discount is taken?
A. $6,000
B. $5,820
C. $6,020
D. $5,800

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300. Shipping charges are $100. The terms of the sale are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the seller record for these transactions?
If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the inventory for a full refund, and received an allowance for $65, how much discount would be applied if the customer remitted payment within the discount window?
Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
A buyer purchases $250 worth of goods on credit from a seller. Shipping charges are $50. The terms of the purchase are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the buyer record for these transactions?
Merchandise with an invoice price of $10,000 is purchased subject to terms of 2/10, n/30, FOB destination. Transportation costs paid by the seller totaled $300. What is the net cost of the merchandise?
I want the Answer please provide
Answer with working steps & explanation
I need answer
Needed for the Correct answer
What is the purchaser's net cost of the merchandise?
Assume the following information: merchandise is sold on account to customer for P120,000, FOB Shipping Point, 2/10, n/30. The seller paid transportation cost of P6,000. What is the amount of remittance due within the discount period?
Merchandise With a sales price of $5000 is sold on account with terms 2/10, n/30. The journal entry is to record the sale which would include a a. Credit to sales for $4900 b debit to sales discount for $100 c. Debit to cash for $5000 d.