What do the credit terms, 2/15, n/30 mean? Multiple Choice A two percent discount can be deducted if the invoice is paid after the fifteenth day following the sale, but before the thirtieth da A two percent discount can be deducted if the invoice is paid before the fifteenth day following the date of the sale. A fifteen percent discount can be deducted if the invoice is paid within two days following the date of sale. A two percent discount be deducted for a period up to thirty days following the date of sale

What do the credit terms, 2/15, n/30 mean? Multiple Choice A two percent discount can be deducted if the invoice is paid after the fifteenth day following the sale, but before the thirtieth da A two percent discount can be deducted if the invoice is paid before the fifteenth day following the date of the sale. A fifteen percent discount can be deducted if the invoice is paid within two days following the date of sale. A two percent discount be deducted for a period up to thirty days following the date of sale

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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Best Credit offer a credit card with an annual percentage rate of 14.98%, a 30 day statement period and a further 25 days interest free. Calculate the amount of interest charged on an outstanding balance of $625, given that the first purchase was made on the first day of the 30-day period and the balance was paid on day 69. Assume that no other purchases were made. (No dollar sign required) Answer:
A supplier offers the following discounts: Trade discounts of 20% at list price and another cash of 3% if paid in full before the due date. The net amount paid by the customer within the discount period is 14,550. How much is the list price? Select the correct response: O 15,200 14,400 18,750 16,000
Find the outstanding balance due at the end of the credit period. Scotty purchased merchandise with a list price of $235,000 with an invoice date of February 10th. He receives the goods on February 15. He is offered a 20/5/5 trade discount and terms of sale 3/15,1/25, n60. He makes a $60,000 partial payment on February 18 and a second partial payment of $40,000 on March 1
Examine the points versus no points chart to respond to the following query: Determine the percentage that the total interest paid will drop from buying no points to three points. To the closest hundredth, round the final response.
A purchase invoice shows 10 items priced at $120 less trade discount 20%. A cash discount of 2%2% is allowed if settlement is made within the allowed credit period. How much will be paid if the cash discount applies? A $1,170 B $1,200 C $936 D $960
Use the information provided below to determine the cost (as a percentage, expressed to twodecimal places) to Banda Stores of not accepting the discount.Fego Manufacturers granted credit terms of 60 days to Banda Stores but the manufacturer is prepared to allow arebate of 2½ % if Banda Stores pays the account within 12 days.
If the invoice terms are changed to 3/15 EOM, what is the new discount date
None
Calculate the forward discount or premium for the following spot and three-month forward rates: (a) Spot Rate = $2.00/£1 and Forward Rate = $2.01/£1 (b) Spot Rate = $2.00/£1 and Forward Rate = $1.96/£1
Complete the following: (Use Table 7.1) Invoice Date goods are received Terms Last day of discount period Final day bill is due (end of credit period) June 18 1/10, n/30
A trade credit bill of $80,000 with terms of sale of 2/5, net 30 means the buyer saves if the bill is paid within the discount period A:1600 How much discount will a buyer receive if the buyer pays a trade credit bill of $60,000 with terms of sale of 2/5, net 30 on the net due date? A: 0
Calculate the APR and rEAR of non-free trade credit associated with credit terms of 3/20, net 65, and 2.5/15, net 75, assuming that customers who do not take the discount pay on the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places. Credit terms of 3/20, net 65 2.5/15, net 75 APR % % rEAR % % delay payment until 15 days after the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places. Credit terms of 3/20, net 65 2.5/15, net 75 APR % % rEAR % %