4. The buyer received an invoice from the seller for merchandise with a list price of OMR 400 and credit terms 2/10, n/60, Find out Credit period, Discount period, Trade discount and Cash discount allowed 5. In credit terms of 3/15, n/45, "3" represents "15" represents n/45 represents

4. The buyer received an invoice from the seller for merchandise with a list price of OMR 400 and credit terms 2/10, n/60, Find out Credit period, Discount period, Trade discount and Cash discount allowed 5. In credit terms of 3/15, n/45, "3" represents "15" represents n/45 represents

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 14MC: A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays...

See similar textbooks

Related questions

Q: Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for…

A: Accounting: Accounting is a system, or a process of collecting and organizing economic…

Q: hat is the amount of the refund owed to the customer? (b) Journalize the entries made by the seller…

Q: A sales invoice included the following information: merchandise price, P4,200; transportation, P320;…

A: Discount on payment = (sales - sales return) x discount rate = (4200-600)*1% = P36

Q: Purchase-Related Transactions The Stationery Company purchased merchandise on account from a…

A: Introduction: An invoice is a type of business document that details and records transactions…

Q: n/30. If Ancheta returns P2,000 of the goods to the vendor, the entry to record the 7. Grace Ancheta…

A: Explanation - There are three statements of the organization which show different accounting…

Q: Transactions for Buyer and Seller Wilmington Co. sold merchandise to Chang Co. on account, $4,450,…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: Journalize the following merchandise transactions: (If an amount box does not require an entry,…

A: Journal is a book where all the entries has been recorded in chronological order. Term 2/10 , net 30…

Q: Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for…

A: 2/10 indicates that a sales discount of 2% is allowed if the payment is made within 10 days.

Q: A sales invoice included the following information: merchandise price, $6,700; terms 1/10, n/eom,…

A: Under FOB shipping, freight charges are aid by the buyer and if seller pays, buyers pays it to the…

Q: retailer assuming that if the retailer made the payment within the discount period? a. RO 78,400 b.…

A: Discount on payment = invoice price x discount rate = RO 80,000 x 2% = RO 1,600

Q: A Company purchased P3,600 of merchandise on account, terms 2/10, n/30. If payment was made after…

A: Purchase price = P 3600 Payment after expiration of the discount period

Q: Purchase-related transactions The Stationery Company purchased merchandise on account from a…

A: Perpetual inventory system is an effective inventory system which is used to record inventory in a…

Q: Humble Co. sells merchandise on credit to Wise Co in the amount of P9,600. The invoice is dated on…

A: ''1/ 15'' means the buyer can take 1 % discount advantages,if he pays the dues with in 15 days/

Q: Purchase-Related Transactions The Stationery Company purchased merchandise on account from a…

A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…

Q: A sales invoice included the following information: merchandise price, $7,100; terms 1/10, n/eom;…

A: The amount of cash that should be received by the seller = Invoice price + Freight charges –…

Q: Merchandise with a sales price of $2,800 is sold on account with terms 2/10, n/30. The journal entry…

A: Journal entry is mandatory requirement of the process of accounting. It is done to record the…

Q: Merchandise with a sales price of $1,100 is sold on account with terms 2/10, n/30. The journal entry…

A: Sales discount = $1,100 x 2% Sales discount = $22

Q: You purchase goods on an invoice dated July 27 with terms of 3/10 EOM. Determine (a) the last day of…

A: A time period of discount which is available for the customer for reducing the cash payment by cash…

Q: Prepare the Journal Entries for the following purchase transactions: I. Purchase of merchandise…

A: Journal entries recording is termed as first step in accounting cycle proces, in which atleast one…

Q: A sales invoice included the following information: merchandise price, $9,000; terms 1/10, n/eom,…

A: Sales invoice: Sales invoice refers to the document which is used to inform the customer the amount…

Q: 8-Assuming that you are a wholesale merchandiser. You sold goods to retail merchandiser under the…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Merchandise is sold on account to a customer for $14,100, terms FOB shipping point, 2/10, n/30. The…

A: FOB: FOB stands for free on board. FOB is term that determines the person who is liable for damage…

Q: A sales invoice included the following information: merchandise price, $8,000; terms 2/10, n/eom.…

A: Formula to calculate cash received by the seller:Cash received by seller = Merchandise price -…

Q: After the amount due on a sale of $26,500, terms 2/10, n/eom, is received from a customer within the…

A: Sales return is the return of merchandize by the buyer due to various reasons such as defect,…

Q: Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of…

A: SOLUTION 1- GIVEN, PURCHASED AMOUNT = 13100 DISCOUNT RATE = 2%

Q: A sales invoice included the following information: merchandise price, $3,100; terms 1/10, n/eom;…

A: Solution: Particulars Amount ($) Merchandise Price 3,100 Less: Merchandise Returns 600 Net…

Q: Jacob Co. sells merchandise on credit to Isaiah Co. in the amount of $9,700. The invoice is dated…

A: Formula: Sales discount = Invoice amount x Discount rate

Q: A sales invoice included the following information: merchandise price, $11,800; terms 1/10, n/eom;…

A: Sales - Return = Net Sales Merchandise Price = $11,800 Prepaid Freight = $560 Merchandise…

Q: Barans Company purchased merchandise on account from a supplier for $9,200, terms 2/10, n/30. Barans…

A: Sales are the revenues generated by the business from its day to day operations. The sales revenue…

Q: A sales invoice included the following information: merchandise price, $9,700; terms 1/10, n/eom,…

A: Sales invoice: Sales invoice refers to the document which is used to inform the customer the amount…

Q: . The buyer received an invoice from the seller for merchandise with a list price of OMR 400 and…

A: 5) 1) Credit Period = 60 Days Buyer need to pay within 60 days 2) Discount Period = 10 days To…

Q: A company purchases merchandise for $23,000. The seller also offers credit terms of 2/10, n/30.…

A: Cost of purchase = 23000 Credit Terms = 2/10, n/30

Q: Merchandise with a sales price of $5,100 is sold on account with terms 2/10, n/30. The journal entry…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: A sales invoice included the following information: merchandise price, $6,000; terms 2/10, n/30.…

A: Payment terms 2/10, n/30 means discount of 2% is valid till 10 days from the date of purchase.…

Q: Journalize the following merchandise transactions: (If an amount box does not require an entry,…

A: 2/10 net 30 terms means that 2% discount shall be allowed in case payment is made within 10 days.…

Q: Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for…

A: Term 2/10, n/30 represent that the payment is due in 30 days and if the payment is made by the…

Q: A Retailer purchased merchandise inventory with an invoice price of RO 80,000 and credit terms are…

A: The net cost of goods sold if payment made within discount period is 78,400 Net Cost of Goods…

Q: A sales invoice included the following information: merchandise price, $10,100; terms 1/10, n/eom;…

A: 1. MERCHANDISE PRICE = $10,100 2. SALES RETURN = $2,000 3. TOTAL SALES = $8,100 4. INVOICE…

Q: . Sales on account, with 2/10, n/30 cash discount terms. (a) Merchandise is sold on account for…

A: Ledger (T - Account) The purpose of preparing the ledger account is to know the balance which are…

Q: merchandise with an invoice amount of $2,800 and received full credit. a. If Nieman Company pays…

A: In the given question, Springhill Company purchased goods worth $ 12,100 and returned goods worth $…

Q: Determine the amount to be paid by the buyer for full settlement of each invoice, assuming that…

A: Requirement a: Compute the net amount to be paid.

Q: Assume that a company records purchases net of discount. If the company bought merchandise valued at…

A: Purchases are recorded net of discount which means Accounts payable will be recorded as net of…

Q: prepare a journal entry to record transaction Buyer buys merchandise for 3,000, credit terms 2/10…

Q: A wholesaler sold merchandise inventory with in invoice price RO 16,000 to the customer of business…

A: COGS stands for Cost of goods sold which is defined as the direct cost of producing the goods sold…

Question

4. The buyer received an invoice from the seller for merchandise with a list price of OMR 400
and credit terms 2/10, n/60, Find out Credit period, Discount period, Trade discount and
Cash discount allowed
5. In credit terms of 3/15, n/45,
"3" represents
"15" represents_
n/45 represents

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Solution

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If a retailer made a purchase in the amount of $350 with credit terms of 2/15, n/60. What would the retailer pay in cash if they received the discount?
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?
Record the following transactions in general journal form. a. Sold merchandise on account to A. Bauer, 680 plus 54.40 sales tax (invoice no. D446). b. Bauer returned 105.50 of the merchandise. Issued credit memo no. 114 for 113.94 (105.50 for the amount of the sale plus 8.44 for the amount of the sales tax).
A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays within the discount window, how much will the retailer remit in cash to the manufacturer? A. $19.50 B. $630.50 C. $650 D. $195
A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays within the discount window, how much will they remit in cash to the retailer? A. $1,250 B. $1,200 C. $50 D. $500
Record the following transactions in general journal form. a. Sold merchandise on account to D. North, invoice no. 4556, 2,515.25. b. Sold merchandise on account to NexStar Industries, invoice no. 4557, 775.00. c. NexStar Industries returned 225.50 worth of the merchandise. Issued credit memo no. 101.
If a retailer purchased inventory in the amount of $680, terms 3/10, n/60, returned $120 of the inventory for a full refund, and received an allowance for $70, how much would the discount be if the retailer remitted payment within the discount window?
If a retailer purchased inventory in the amount of $750, terms 2/10, n/60, returned $30 of the inventory for a full refund, and received an allowance for $95, how much would the discount be if the retailer remitted payment within the discount window?
A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, purchases D. sales discounts, cost of goods sold