On March 16, CoCo Childcare bought 120 tumbling mats on account at $100 each. Terms of the purchase were 4/10, n/30. It paid for 85 tumbling mats on March 25 and paid for the remaining 35 tumbling mats on April 15. If CoCo uses the net method to account for its inventory purchases, what is its cash payment and reduction of inventory on March 25? What is the amount of accounts payable after the March 25 payment? Assume that the perpetual inventory system is used. (For entries with a $0 balance, make sure to enter "0" in the appropriate input cell.) On March 25, CoCo cash payment is On March 25, the reduction of inventory is
On March 16, CoCo Childcare bought 120 tumbling mats on account at $100 each. Terms of the purchase were 4/10, n/30. It paid for 85 tumbling mats on March 25 and paid for the remaining 35 tumbling mats on April 15. If CoCo uses the net method to account for its inventory purchases, what is its cash payment and reduction of inventory on March 25? What is the amount of accounts payable after the March 25 payment? Assume that the perpetual inventory system is used. (For entries with a $0 balance, make sure to enter "0" in the appropriate input cell.) On March 25, CoCo cash payment is On March 25, the reduction of inventory is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On March 16, CoCo Childcare bought 120 tumbling mats on account at $100 each. Terms of the purchase were 4/10, n/30. It paid for 85 tumbling mats on
March 25 and paid for the remaining 35 tumbling mats on April 15. If CoCo uses the net method to account for its inventory purchases, what is its cash
payment and reduction of inventory on March 25? What is the amount of accounts payable after the March 25 payment? Assume that the perpetual
inventory system is used.
(For entries with a $0 balance, make sure to enter "0" in the appropriate input cell.)
On March 25, CoCo cash payment is
On March 25, the reduction of inventory is
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