What do credit terms of 2/10, n/30 mean? 2–10 days to pay on time or 30 days before going to collection. 2 percent discount if paid within 10 days, but 30 days to pay on time 2–10 days to pay with a discount, net 30 days to pay after the discount period 2–10 percent discount if paid within 30 days None of the above

Question

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Answer 1

Textbook Question

Chapter 10, Problem 1QY

What do credit terms of 2/10, n/30 mean?

2–10 days to pay on time or 30 days before going to collection.
2 percent discount if paid within 10 days, but 30 days to pay on time
2–10 days to pay with a discount, net 30 days to pay after the discount period
2–10 percent discount if paid within 30 days
None of the above

Expert Solution & Answer

To determine

Identify the correct option to explain the given credit terms.

Answer to Problem 1QY

Option (b)

Explanation of Solution

Credit terms are the terms of payment offered by the seller to the buyer.

For example: Terms of payment is 1/10, n/30.

1/10, n/30 refers to the sales discount given to the buyer by the seller in case of prompt payment. 1/10, n/30 means the following:

“1” is the discount percentage offered to the purchaser by the seller.
“10” refers to the number of days available for the buyer to pay and take advantage of the discount.
“n/30” indicates that if the payment is not made by the buyer within 30 days, then he might not be eligible for the sales discount. Hence, payment will be due for the net amount at the end of the current month.

Justification for the correct answer:

Option (b): Credit term of 2/10,n/30 means 2 percentage discount if paid within 10 days, but 30 days’ time to pay. Therefore, Option (b) is correct answer.

Justification for the incorrect answer:

Option (a): 2 percentage of discount is allowed if paid within 10days but in this option it given as the time period. Hence, option (a) is incorrect answer.
Option (c): 2 percentage of discount is allowed if paid within 10days but in this option given it as time period and 30 days to pay after the discount period. Hence, option (c) is the incorrect answer.
Option (d): 2 percentage of discount is allowed if paid within the 30 days not 2-10 percentages. Hence, option (d) is the incorrect answer.
Option (e) as the option (b) is correct answer, hence, option (e) is incorrect answer.

Conclusion

Therefore, option (b) is the correct answer.

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Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,800 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,000 24,400 73,400 9,420 $ 82,820 c. Time tickets show the following labor used for the month. Print References Job 201 $ 40,000 Job 202 13,400 Total direct labor 53,400 25,000 $ 78,400 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $166,160 on credit. g. Incurred the following actual other…

Answer 2

Textbook Question

Chapter 10, Problem 1QY

What do credit terms of 2/10, n/30 mean?

2–10 days to pay on time or 30 days before going to collection.
2 percent discount if paid within 10 days, but 30 days to pay on time
2–10 days to pay with a discount, net 30 days to pay after the discount period
2–10 percent discount if paid within 30 days
None of the above

Expert Solution & Answer

To determine

Identify the correct option to explain the given credit terms.

Answer to Problem 1QY

Option (b)

Explanation of Solution

Credit terms are the terms of payment offered by the seller to the buyer.

For example: Terms of payment is 1/10, n/30.

1/10, n/30 refers to the sales discount given to the buyer by the seller in case of prompt payment. 1/10, n/30 means the following:

“1” is the discount percentage offered to the purchaser by the seller.
“10” refers to the number of days available for the buyer to pay and take advantage of the discount.
“n/30” indicates that if the payment is not made by the buyer within 30 days, then he might not be eligible for the sales discount. Hence, payment will be due for the net amount at the end of the current month.

Justification for the correct answer:

Option (b): Credit term of 2/10,n/30 means 2 percentage discount if paid within 10 days, but 30 days’ time to pay. Therefore, Option (b) is correct answer.

Justification for the incorrect answer:

Option (a): 2 percentage of discount is allowed if paid within 10days but in this option it given as the time period. Hence, option (a) is incorrect answer.
Option (c): 2 percentage of discount is allowed if paid within 10days but in this option given it as time period and 30 days to pay after the discount period. Hence, option (c) is the incorrect answer.
Option (d): 2 percentage of discount is allowed if paid within the 30 days not 2-10 percentages. Hence, option (d) is the incorrect answer.
Option (e) as the option (b) is correct answer, hence, option (e) is incorrect answer.

Conclusion

Therefore, option (b) is the correct answer.

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Answer 3

Textbook Question

Chapter 10, Problem 1QY

What do credit terms of 2/10, n/30 mean?

2–10 days to pay on time or 30 days before going to collection.
2 percent discount if paid within 10 days, but 30 days to pay on time
2–10 days to pay with a discount, net 30 days to pay after the discount period
2–10 percent discount if paid within 30 days
None of the above

Expert Solution & Answer

To determine

Identify the correct option to explain the given credit terms.

Answer to Problem 1QY

Option (b)

Explanation of Solution

Credit terms are the terms of payment offered by the seller to the buyer.

For example: Terms of payment is 1/10, n/30.

1/10, n/30 refers to the sales discount given to the buyer by the seller in case of prompt payment. 1/10, n/30 means the following:

“1” is the discount percentage offered to the purchaser by the seller.
“10” refers to the number of days available for the buyer to pay and take advantage of the discount.
“n/30” indicates that if the payment is not made by the buyer within 30 days, then he might not be eligible for the sales discount. Hence, payment will be due for the net amount at the end of the current month.

Justification for the correct answer:

Option (b): Credit term of 2/10,n/30 means 2 percentage discount if paid within 10 days, but 30 days’ time to pay. Therefore, Option (b) is correct answer.

Justification for the incorrect answer:

Option (a): 2 percentage of discount is allowed if paid within 10days but in this option it given as the time period. Hence, option (a) is incorrect answer.
Option (c): 2 percentage of discount is allowed if paid within 10days but in this option given it as time period and 30 days to pay after the discount period. Hence, option (c) is the incorrect answer.
Option (d): 2 percentage of discount is allowed if paid within the 30 days not 2-10 percentages. Hence, option (d) is the incorrect answer.
Option (e) as the option (b) is correct answer, hence, option (e) is incorrect answer.

Conclusion

Therefore, option (b) is the correct answer.

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Answer 4

Textbook Question

Chapter 10, Problem 1QY

What do credit terms of 2/10, n/30 mean?

2–10 days to pay on time or 30 days before going to collection.
2 percent discount if paid within 10 days, but 30 days to pay on time
2–10 days to pay with a discount, net 30 days to pay after the discount period
2–10 percent discount if paid within 30 days
None of the above

Expert Solution & Answer

To determine

Identify the correct option to explain the given credit terms.

Answer to Problem 1QY

Option (b)

Explanation of Solution

Credit terms are the terms of payment offered by the seller to the buyer.

For example: Terms of payment is 1/10, n/30.

1/10, n/30 refers to the sales discount given to the buyer by the seller in case of prompt payment. 1/10, n/30 means the following:

“1” is the discount percentage offered to the purchaser by the seller.
“10” refers to the number of days available for the buyer to pay and take advantage of the discount.
“n/30” indicates that if the payment is not made by the buyer within 30 days, then he might not be eligible for the sales discount. Hence, payment will be due for the net amount at the end of the current month.

Justification for the correct answer:

Option (b): Credit term of 2/10,n/30 means 2 percentage discount if paid within 10 days, but 30 days’ time to pay. Therefore, Option (b) is correct answer.

Justification for the incorrect answer:

Option (a): 2 percentage of discount is allowed if paid within 10days but in this option it given as the time period. Hence, option (a) is incorrect answer.
Option (c): 2 percentage of discount is allowed if paid within 10days but in this option given it as time period and 30 days to pay after the discount period. Hence, option (c) is the incorrect answer.
Option (d): 2 percentage of discount is allowed if paid within the 30 days not 2-10 percentages. Hence, option (d) is the incorrect answer.
Option (e) as the option (b) is correct answer, hence, option (e) is incorrect answer.

Conclusion

Therefore, option (b) is the correct answer.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Identify the correct option to explain the given credit terms.

Answer to Problem 1QY

Option (b)

Explanation of Solution

Credit terms are the terms of payment offered by the seller to the buyer.

For example: Terms of payment is 1/10, n/30.

1/10, n/30 refers to the sales discount given to the buyer by the seller in case of prompt payment. 1/10, n/30 means the following:

“1” is the discount percentage offered to the purchaser by the seller.
“10” refers to the number of days available for the buyer to pay and take advantage of the discount.
“n/30” indicates that if the payment is not made by the buyer within 30 days, then he might not be eligible for the sales discount. Hence, payment will be due for the net amount at the end of the current month.

Justification for the correct answer:

Option (b): Credit term of 2/10,n/30 means 2 percentage discount if paid within 10 days, but 30 days’ time to pay. Therefore, Option (b) is correct answer.

Justification for the incorrect answer:

Option (a): 2 percentage of discount is allowed if paid within 10days but in this option it given as the time period. Hence, option (a) is incorrect answer.
Option (c): 2 percentage of discount is allowed if paid within 10days but in this option given it as time period and 30 days to pay after the discount period. Hence, option (c) is the incorrect answer.
Option (d): 2 percentage of discount is allowed if paid within the 30 days not 2-10 percentages. Hence, option (d) is the incorrect answer.
Option (e) as the option (b) is correct answer, hence, option (e) is incorrect answer.

Conclusion

Therefore, option (b) is the correct answer.

Answer 8

Expert Solution & Answer

To determine

Identify the correct option to explain the given credit terms.

Answer to Problem 1QY

Option (b)

Explanation of Solution

Credit terms are the terms of payment offered by the seller to the buyer.

For example: Terms of payment is 1/10, n/30.

1/10, n/30 refers to the sales discount given to the buyer by the seller in case of prompt payment. 1/10, n/30 means the following:

“1” is the discount percentage offered to the purchaser by the seller.
“10” refers to the number of days available for the buyer to pay and take advantage of the discount.
“n/30” indicates that if the payment is not made by the buyer within 30 days, then he might not be eligible for the sales discount. Hence, payment will be due for the net amount at the end of the current month.

Justification for the correct answer:

Option (b): Credit term of 2/10,n/30 means 2 percentage discount if paid within 10 days, but 30 days’ time to pay. Therefore, Option (b) is correct answer.

Justification for the incorrect answer:

Option (a): 2 percentage of discount is allowed if paid within 10days but in this option it given as the time period. Hence, option (a) is incorrect answer.
Option (c): 2 percentage of discount is allowed if paid within 10days but in this option given it as time period and 30 days to pay after the discount period. Hence, option (c) is the incorrect answer.
Option (d): 2 percentage of discount is allowed if paid within the 30 days not 2-10 percentages. Hence, option (d) is the incorrect answer.
Option (e) as the option (b) is correct answer, hence, option (e) is incorrect answer.

Conclusion

Therefore, option (b) is the correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Identify the correct option to explain the given credit terms.

Answer 12

Answer to Problem 1QY

Option (b)

Answer 13

Explanation of Solution

Credit terms are the terms of payment offered by the seller to the buyer.

For example: Terms of payment is 1/10, n/30.

1/10, n/30 refers to the sales discount given to the buyer by the seller in case of prompt payment. 1/10, n/30 means the following:

“1” is the discount percentage offered to the purchaser by the seller.
“10” refers to the number of days available for the buyer to pay and take advantage of the discount.
“n/30” indicates that if the payment is not made by the buyer within 30 days, then he might not be eligible for the sales discount. Hence, payment will be due for the net amount at the end of the current month.

Justification for the correct answer:

Option (b): Credit term of 2/10,n/30 means 2 percentage discount if paid within 10 days, but 30 days’ time to pay. Therefore, Option (b) is correct answer.

Justification for the incorrect answer:

Option (a): 2 percentage of discount is allowed if paid within 10days but in this option it given as the time period. Hence, option (a) is incorrect answer.
Option (c): 2 percentage of discount is allowed if paid within 10days but in this option given it as time period and 30 days to pay after the discount period. Hence, option (c) is the incorrect answer.
Option (d): 2 percentage of discount is allowed if paid within the 30 days not 2-10 percentages. Hence, option (d) is the incorrect answer.
Option (e) as the option (b) is correct answer, hence, option (e) is incorrect answer.

Answer 14

Conclusion

Therefore, option (b) is the correct answer.

Answer 15

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