(a) Sales discounts: The term 5 / 10 , n / 30 means that if a customer is paying in 10 days then the payment will be after a discount of 5 % on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount. To calculate: The addition to the net sales and gross margin due to new discount policy.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5, Problem 80APSA

To determine

(a)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The addition to the net sales and gross margin due to new discount policy.

To determine

(b)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The reason of improving the cash flow after providing discount policy.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Round your answer to nearest $

Please need answer the general accounting question

In joint venture accounting, the equity method requires? (a) Line-by-line consolidation (b) Recognition of share of profits and net assets (c) Cost method only (d) Fair value accounting

Answer 2

Question

Chapter 5, Problem 80APSA

To determine

(a)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The addition to the net sales and gross margin due to new discount policy.

To determine

(b)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The reason of improving the cash flow after providing discount policy.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 5, Problem 80APSA

To determine

(a)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The addition to the net sales and gross margin due to new discount policy.

To determine

(b)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The reason of improving the cash flow after providing discount policy.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 5, Problem 80APSA

To determine

(a)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The addition to the net sales and gross margin due to new discount policy.

To determine

(b)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The reason of improving the cash flow after providing discount policy.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 5, Problem 80APSA

To determine

(a)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The addition to the net sales and gross margin due to new discount policy.

To determine

(b)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The reason of improving the cash flow after providing discount policy.

Answer 6

Chapter 5, Problem 80APSA

To determine

(a)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The addition to the net sales and gross margin due to new discount policy.

Answer 7

Chapter 5, Problem 80APSA

To determine

(a)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The addition to the net sales and gross margin due to new discount policy.

Answer 8

To determine

(b)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The reason of improving the cash flow after providing discount policy.

Answer 9

To determine

(b)

Sales discounts:

The term 5/10,n/30 means that if a customer is paying in 10 days then the payment will be after a discount of 5% on the total value but if the customer is paying in 30 days then the payment will be made in full which means no discount.

To calculate:

The reason of improving the cash flow after providing discount policy.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 5 - When is revenue recognized?Ch. 5 - When is a performance obligation satisfied?Ch. 5 - At what amount should sales revenue be recorded...Ch. 5 - Prob. 4DQ Ch. 5 - Prob. 5DQ Ch. 5 - Prob. 6DQ Ch. 5 - Prob. 7DQ Ch. 5 - Prob. 8DQ Ch. 5 - Prob. 9DQ Ch. 5 - Why is the direct write-off method not GAAP?

Solution Summary: The author calculates the addition to the net sales and gross margin due to new discount policy.

Want to see the full answer?

Chapter 5 Solutions