The ABC Company produced specialized software for a customer. It delivered the software on 1/1/2023. It billed the customer $10,000 with the following terms: 1.5/15, net 60. Make a journal entry to record the receipt of payment within the discount period Make a journal entry to record the receipt of payment after the discount period has passed. What annualized pretax rate of return will the customer earn if payment is made on the 15th day after receiving the software? % Assuming the customer had a tax rate of 30% and that it immediately expense the software, reducing taxable income and related tax obligation, what annualized after-tax rate of return would it earn from making payment on the 15th day after receiving the software? %
The ABC Company produced specialized software for a customer. It delivered the software on 1/1/2023. It billed the customer $10,000 with the following terms: 1.5/15, net 60. Make a journal entry to record the receipt of payment within the discount period Make a journal entry to record the receipt of payment after the discount period has passed. What annualized pretax rate of return will the customer earn if payment is made on the 15th day after receiving the software? % Assuming the customer had a tax rate of 30% and that it immediately expense the software, reducing taxable income and related tax obligation, what annualized after-tax rate of return would it earn from making payment on the 15th day after receiving the software? %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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