3. Ms. Raheema purchases goods with a list price of RO 30,000. The supplier offers a 10 % trade discount, and a 2 ½ % cash discount for payment within 10 days. Required: a) Calculate the amount Ms. Raheema will have to pay after the 10 days of discount b) Calculate the amount Ms. Raheema will pay during the discount period

3. Ms. Raheema purchases goods with a list price of RO 30,000. The supplier offers a 10 % trade discount, and a 2 ½ % cash discount for payment within 10 days. Required: a) Calculate the amount Ms. Raheema will have to pay after the 10 days of discount b) Calculate the amount Ms. Raheema will pay during the discount period

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 7DQ

See similar textbooks

Similar questions

Captain Whitman Ship Supplies offers terms of 3/15, net 45. If a purchaser takes the discount and pays on the 10th day, what is the nominal cost of trade credit? Now suppose a purchaser actually pays on the 20th day but still takes the discount. What is the actual nominal cost of the trade credit?
Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 6,000 treats at $1 per treat. Terms of the purchase are 2/10, n/30. Barkers pays half the amount due in cash on February 28 but cannot pay the remaining balance due in four days. The supplier renegotiates the terms on March 4 and allows Barkers to convert its purchase payment into a short-term note, with an annual interest rate of 6%, payable in 9 months. Show the entries for the initial purchase, the partial payment, and the conversion.
Pianos Unlimited sells pianos to customers. The company contracts with a supplier who provides it with replacement piano keys. There is an agreement that Pianos Unlimited is not required to provide cash payment immediately, and instead will provide payment within thirty days of the invoice date. Additional information: Pianos Unlimited purchases 400 piano keys for $7 each on September 1, invoice date September 1, with discount terms 2/10, n/30. Pianos Unlimited returns 150 piano keys (receiving a credit amount for the total purchase price per key of $7 each) on September 8. The company purchases an additional 230 keys for $5 each on September 15, invoice date September 15, with no discount terms. The company pays 50% of the total amount due to the supplier on September 24. What amount does Pianos Unlimited still owe to the supplier on September 30? What account is used to recognize this outstanding amount?
Airplanes Unlimited purchases airplane parts from a supplier on March 19 at a quantity of 4,800 parts at $12.50 per part. Terms of the purchase are 3/10, n/30. Airplanes pays one-third of the amount due in cash on March 30 but cannot pay the remaining balance due. The supplier renegotiates the terms on April 18 and allows Airplanes to convert its purchase payment into a short-term note, with an annual interest rate of 9%, payable in six months. Show the entries for the initial purchase, the partial payment, and the conversion.
Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
Resin Milling issued a $390,500 note on January 1, 2018 to a customer in exchange for merchandise. The merchandise had a cost to Resin Milling of $170,000. The terms of the note are 24-month maturity date on December 31, 2019 at a 5% annual interest rate. The customer does not pay on its account and dishonors the note. Record the journal entries for Resin Milling for the following transactions. A. Initial sale on January 1, 2018 B. Dishonored note entry on January 1, 2020, assuming interest has not been recognized before note maturity
Blake Department Store sells television sets with one-year warranties that cover repair and replacement of television parts. In the month of June, Blake sells forty television sets with a per unit cost of $500. If Blake estimates warranty fulfillment at 10% of sales, what would be the warranty liability reported in June? A. $1,000 B. $2,000 C. $500 D. $20,000
A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300. Shipping charges are $100. The terms of the sale are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the seller record for these transactions?
4. Ms. Raheema purchases goods with a list price of RO 30,000. The supplier offers a 10 % trade discount, and a 2 ½ % cash discount for payment within 10 days. Required: a) Calculate the amount Ms. Raheema will have to pay if it delays longer than 10 days before paying. b) Calculate the amount Ms. Raheema will pay if it pays within 10 days.
ABC Company sold 10 units of goods with a total list price of P30,000 on Jan. 1, 2019. Given that the trade discount is 5% and the cash discount is 10%, and that the cash discount period is 10 days and the credit period is 30 days, if the customer settles the debt on Jan. 8, 2019, what is the actual amount he needs to pay? Choices: P28,500 P25,650 P30,000 P17,100
GJ Office Supplies offers the following discounts: Trade discounts of 10% at list price and another cash discount of 5% if paid in full before the due date. How mush is to paid if a customer pays before due date at a list price of P62,000.
How much will the Christopher Corporation have to pay for the merchandise if it pays on September 3? Purchase terms of 2/10, n/30 mean the Christopher Corporation will be allowed a 2% purchase discount if the merchandise is paid for within 10 days. If the bill is paid on September 3, which is not within 10 days of the purchase, full $50,000 will have to be paid.