Financial accounting question TechGear Corporation of San Jose sold DataSmartSolutions of Boston computer servers with a list priceof $12,500. The sale terms are 2/10, n/30 FOB SanJose. TechGear agreed to prepay the $95 shippingcost. DataSmart pays the invoice within the discountperiod. How much does DataSmart pay TechGear?

Step 1: Define Payment Terms and FOB Shipping Point2/10, n/30: The buyer gets a 2% discount if…

Answered: TechGear Corporation of San Jose sold…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 7DQ

See similar textbooks

Similar questions

What does Lee pay Jordan's?
Please give me answer
Macy of New York sold LeeCo. of Chicago office equipment with a $5,600 list price. Sale terms were 5/10, n/30 FOB New York. Macy agreed to prepay the $80 freight. LeeCo. pays the invoice within the discount period. What does LeeCo. pay Macy?
answer ?? : General accounting
Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the seller. Consider this case: Purple Turtle Group buys on terms of 3/10, net 30 from its chief supplier. If Purple Turtle receives an invoice for $856.75, what would be the true price of this invoice? $1,163.47 $1,038.81 $706.39 $831.05 The nominal annual cost of the trade credit extended by the supplier is (Note: Assume there are 365 days in a year.) The effective annual rate of interest on trade credit is Suppose Purple Turtle does not take advantage of the discount and then chooses to pay its supplier late-so that on average, Purple Turtle will pay its supplier on the 35th day after the sale. As a result, Purple Turtle can decrease its nominal cost of trade credit by % by paying late.
J.C. Penney of Boston sold office equipment for $12,000 to Lee's of San Diego. Terms of the sale are 3/10, n/30 FOB Boston. J.C. Penney has agreed to prepay freight $300. Assuming Lee's pays within the discount period, how much will Lee's pay J.C. Penney?
Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the seller. Consider this case: Tasty Tuna Corporation buys on terms of 4/10, net 45 from its chief supplier. A. If Tasty Tuna receives an invoice for $856.75, what would be the true price of this invoice? (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.) $822.48 $575.74 $699.11 $616.86 B. The nominal annual cost of the trade credit extended by the supplier is , assuming a 365-day year. (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.) C. Suppose Tasty Tuna does not take advantage of the discount and then chooses to pay its supplier late—so that on average, Tasty Tuna will pay its supplier on the 50th day after the sale. As a result,…
Bell Corporation sold merchandise on account with a list price of $18,000 and a cost of $10,000. Payment terms were 1/10, n/30. Bell shipped the goods FOB destination and paid $600 in freight costs. Prior to payment of the invoice, the customer returned merchandise with a list price of $1,800 and a $1,000 cost. The customer paid the amount due within the discount period. What is Bell Corporation's net sales amount as a result of these transactions?
Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the seller. Consider this case: Tasty Tuna Corporation buys on terms of 1/20, net 60 from its chief supplier. If Tasty Tuna receives an invoice for $1,254.98, what would be the true price of this invoice? (Note: Round all intermediate calculations to four decimal places, and your final answer to two decimal places.) $1,553.04 $1,242.43 $1,056.07 O $931.82 The nominal annual cost of the trade credit extended by the supplier is calculations to four decimal places, and your final answer to two decimal places.) , assuming a 365-day year. (Note: Round all intermediate Suppose Tasty Tuna does not take advantage of the discount and then chooses to pay its supplier late-so that on average, Tasty Tuna will pay its supplier on the 65th day after the sale. As a result, Tasty Tuna can decrease its nominal cost of trade…
Saved Boeing Truck Company received an invoice showing 12 tires at $114 each, 15 tires at $157 each, and 17 tires at $191 each. Shipping terms are FOB shipping point. Freight is $477; trade discount is 10/5; and a cash discount of 3/10, n/30 is offered. Assuming Boeing paid within the discount period, what did Boeing pay? (Round all intermediate calculations to two decimal places (the nearest penny) and enter your final answer rounded to two decimal places.) Payable amount
Silver Cloud Computing purchased office equipment for $75,000 with a trade discount of 12% and cash discount terms of 2/10, n/30. If they pay within the discount period, calculate the final payment amount. Solve this problem
Jump & Play Inc. sold 10 outdoor playsets to BigMart Co. The playsets are listed at $1,500 each; Jump & Play offered a trade discount of 10% to BigMart Co. BigMart Co. retails the playsets to customers at a price of $1,800. If Jump & Play sells the playsets to BigMart on account, what is the receivable per playset that Jump & Play should record? Question 4 options: $1,800 $1,350 $1,500 $1,620

SEE MORE QUESTIONS

Recommended textbooks for you

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

SEE MORE TEXTBOOKS