(a) Sales discounts: The term 3 / 15 , n / 20 means that if a customer is paying in 15 days then the payment will be after a discount of 3 % on the total value but if the customer is paying in 20 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.

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Answer 1

Question

Chapter 5, Problem 80BPSB

To determine

(a)

Sales discounts:

The term 3/15,n/20 means that if a customer is paying in 15 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 20 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 3/15,n/20 means that if a customer is paying in 15 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 20 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.

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Answer 2

Question

Chapter 5, Problem 80BPSB

To determine

(a)

Sales discounts:

The term 3/15,n/20 means that if a customer is paying in 15 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 20 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 3/15,n/20 means that if a customer is paying in 15 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 20 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

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Answer 3

Question

Chapter 5, Problem 80BPSB

To determine

(a)

Sales discounts:

The term 3/15,n/20 means that if a customer is paying in 15 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 20 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 3/15,n/20 means that if a customer is paying in 15 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 20 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.

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Answer 4

Question

Chapter 5, Problem 80BPSB

To determine

(a)

Sales discounts:

The term 3/15,n/20 means that if a customer is paying in 15 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 20 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 3/15,n/20 means that if a customer is paying in 15 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 20 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.

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Answer 5

Chapter 5, Problem 80BPSB

To determine

(a)

Sales discounts:

The term 3/15,n/20 means that if a customer is paying in 15 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 20 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 3/15,n/20 means that if a customer is paying in 15 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 20 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 80BPSB

To determine

(a)

Sales discounts:

The term 3/15,n/20 means that if a customer is paying in 15 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 20 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 80BPSB

To determine

(a)

Sales discounts:

The term 3/15,n/20 means that if a customer is paying in 15 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 20 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 3/15,n/20 means that if a customer is paying in 15 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 20 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 3/15,n/20 means that if a customer is paying in 15 days then the payment will be after a discount of 3% on the total value but if the customer is paying in 20 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

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Answer 11

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Answer 12

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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.

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