### Order and Discount DetailsThe housewares department placed an order for 2 dozen Ninja Bullet Juicers with a list price of $300 each, accompanied by trade discounts of 30%, 10%, and 5%. Below is the supplier’s price schedule:- **Additional Discounts Based on Order Amount:** - If a maximum order of $3,000 is placed, the buyer receives an additional 1%. - If an initial order of $4,000 is placed, the buyer receives an additional 1.5%. - If an initial order of $5,000 is placed, the buyer receives an additional 2%.- **Early Payment Discount:** - Payments made within 10 days earn an additional 2% cash discount.### Problem- **Question:** If this invoice was paid in 9 days, what amount should have been remitted to the vendor?Note: Image contains a variety of fruits and vegetables, illustrating the juicers' application. There are no graphs or diagrams.

During the course of a business, traders may provide discounts to their customers. The kinds of…

Answered: The housewares department placed an…

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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Suppose you are the buyer for the housewares department of a department store. A number of vendors in your area carry similar lines of merchandise. On sets of microwavable serving bowls, Brand A offers a list price of $400 per dozen less a 35% trade discount. Brand B offers a similar set for a list price of $425 less a 42% trade discount. (a) Which vendor is offering the lower net price? Brand A Brand B (b) If you order 500 dozen sets of the bowls, how much money (in $) will be saved by using the lower-priced vendor?
Massa Machine Tools expects Total sales of 14,000. The price per unit is $6. The firm estimates an ordering cost of $9.96 per order, with inventory cost of $8.84 per unit. What is the optimum order size? (Round to the nearest whole number)
Shadee Corp. expects to sell 610 sun visors in May and 440 in June. Each visor sells for $22. Shadee's beginning and ending finished goods inventories for May are 85 and 45 units, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $5.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 35 closures on hand on May 1, 18 closures on May 31, and 23 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,300 per month, and variable manufacturing overhead is $1.50 per unit produced. Required: 1. Determine Shadee's budgeted cost of closures purchased for May and June. 2. Determine Shadee's budget manufacturing overhead for May and June.
A December promotion of 1,500 crystal bud vases to retail at $40 each is planned. The buyer requires a 48.5% average markup and has made an initial purchase consisting of 1,200 units costing $23 each. What is the cost to be paid on each remaining unit?
Sports Haven purchased 600 bottles of flavored water at $1.40 each. Experience has indicated that, due to expiration dates, 5% of the bottles will be sold at cost. Find the price at which the bottles of flavored water must be sold to cover a 15% markup on selling price. Round to the nearest cent.
21. The kitchen textiles buyer placed an order for 12,000 holiday motif towels at a billed cost of $1.70 each. The shipping charges on the order amounted to $300. The buyer negotiated a cost discount of 12%. What is the cost of goods sold for this order?
A merchandising company sells a particular product that is estimated to have approximately 1,500 sales this year. The purchasing department estimates that it will cost approximately $200 to place an order for this product: $180 fixed and $20 variable. The total annual carrying cost for this product is $1,500. What is the product’s EOQ? A. 775 B. 19 C. 735 D. 20
Cullumber Publishing Co. publishes college textbooks that are sold to bookstores on the following terms. Each title has a fixed wholesale price, terms f.o.b. shipping point, and payment is due 60 days after shipment. The retailer may return a maximum of 30% of an order at the retailer's expense. Sales are made only to retailers who have good credit ratings. Past experience indicates that the normal return rate is 12% and the average collection period is 72 days. The company follows IFRS. On August 8, 2020, Cullumber shipped books invoiced at $28,000,000 (cost $22,000,000). Prepare the journal entry to record this transaction, including the expected returns. Cullumber follows ASPE. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date August 8, 2020 August 8, 2020 August 8, 2020 Account Titles and Explanation (To record sale on account) (To…
Based on an EOQ analysis (assuming a constant demand), the optimal order quantity is 2,500. The company desires a safety stock of 500 units. A 5-day lead time is needed for delivery. Annual inventory carrying costs equal 25% of the average inventory level. The company pays P4 per unit to buy the product, which it sells for P8. The company pays P150 to place a detailed order, and the monthly demand for the product is 4,000 units. Compute for the annual inventory carrying cost.
Carla Vista Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns extends 60 days. On February 10, 2021, a customer purchases on account $3500 of products (cost $1750). Assuming that based on prior experience, estimated returns are 20%. The journal entry to record the expected sales return includes a debit to Cash and a credit to Sales Revenue of $3500. debit to Sales Returns and Allowance of $700 and a credit to Allowance for Sales Returns and Allowances of $700. credit to Estimated Inventory Returns of $350. debit to Cost of Goods Sold and credit to Inventory for $1750.
[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 530 sun visors in May and 350 in June. Each visor sells for $25. Shadee’s beginning and ending finished goods inventories for May are 80 and 50 units, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 34 closures on hand on May 1, 20 closures on May 31, and 23 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $800 per month, and variable manufacturing overhead is $2.75 per unit produced. Required: 1. Determine Shadee's budgeted cost of closures purchased for May and June. 2. Determine Shadee's budget manufacturing overhead for May and June.
You place an order for 1,100 units of Good X at a unit price of $48. The supplier offers terms of 3/30, net 40. How many days’ credit are you receiving? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

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