A buyer receives merchandise on September 7th that is invoiced for $3,250. The date on the invoice is August 2nd and the terms are3/15 ROG. How much is due if the buyer pays the bill on September 24th?Answer:A buyer receives the bill for $2,500 of merchandise from a vendor. The date on the invoice is January 15th and the terms are net. Howmuch is due to the vendor and what is the due date?Select one:O a. $2,450 on January 30thb. $2,500 on January 30thc. $2,450 on February 14thd. $2,500 on February 14thMerchandise received on March 2nd with a total quoted cost of $4,000 and transportation costs of $200 was billed on an invoice datedFebruary 6th. The terms on the invoice were 2/10 ROG, FOB Destination, Charges Reversed. How much was due to the vendor if thebuyer paid on February 26th?Answer:A buyer receives merchandise on April 2nd that is invoiced for $8,200. The date on the invoice is April 27th and the terms are 2/10EOM. What is due if the buyer pays by May 15th?Select one:a. $8,000b. $7,380c. $8,200d. $8,036e. $8,364

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

A buyer receives merchandise on September 7th that is involced for $3,250. The date on the invoice is August 2nd and the terms are 3/15 ROG. How much is due if the buyer pays the bill on September 24th? Answer:

A buyer receives merchandise on September 7th that is involced for $3,250. The date on the invoice is August 2nd and the terms are 3/15 ROG. How much is due if the buyer pays the bill on September 24th? Answer:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 15MC: A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize...

See similar textbooks

Related questions

Q: Apple Co sells merchandise on credit to Zea Co in the amount of P8,000. The invoice is dated on…

A: Cash Discount Customers are rewarded with cash savings if they pay their bills within a particular…

Q: An invoice for accessories is dated December 27 and this paid on January 10. The trade discount is…

A: The following Free on board agreements is given to the trader as per the quantity purchased.

Q: An invoice of RO 50,000 with the terms 7/18, n/30, ROG is dated on May 10th. The goods are received…

A: Given: 7/18 means if you pay the bill within 18 days you will get a discount for 7% N/30 means if…

Q: Kaden Co. sells merchandise on credit to Jase Co. for $9,600. The invoice is dated July 15 with…

A: Discount: It refers to a percentage that is deducted from the normal selling price of a product.

Q: What is the net amount due (in $) on the order if the bill is paid by the 20th day?

A: Here is the answer for the above question.

Q: On 12th January 2018, Megamart company grants an allowance to a Max traders, a customer of RO 2,600…

A: Sales allowance is reduction of price when customer keep the product but he is not satisfied with…

Q: A buyer received an invoice for P 60,000, inclusive of 12% VAT dated October 2. If the terms are…

A: Formula: Amount paid = Total Invoice amount - Discount amount.

Q: A retailer purchases merchandise with a catalog list price of $34,900. The retailer receives a 24%…

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

Q: Merchandise with an invoice price of $5,000 is purchased on March 1 subject to terms of 2/10, n/30.…

A: Note: 2/10, n/30: Here, 2 represents the discount rate if payment is made within ten days. And if…

Q: Bakers’ Pal regularly buys sacks of flour from Mill Company and is allowed trade discounts of 20%…

A: When the raw material or goods for sale purpose are taken from the wholesaler or the manufacturer is…

Q: Create the journal entries for Bates to recognize the following transactions. Assume the perpetual…

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

Q: A retailer purchases some merchandise with an invoice price of $19,700 and terms of sale of 5/15,…

A: Invoice Price = $19,700 Terms of Sale , If paid in 15 days 5% discount on the amount

Q: An invoice of RO500 with the terms 2/10, n/30 ROG is dated on June 10. The goods are received on…

A: 2/10,n/30 means 2% cash discount can be availed if payment is paid within 10 days of invoice. n/30…

Q: If vests costing $00 with terms 2/20, n/60 ROG were received by the company on April 12 with an…

A: The invoice with term ROG states that due date for invoice would be counted from the date of receipt…

Q: A retailer received an invoice of RO 2500 with the terms 3/12, n/30 ROG on January 25th. The goods…

A: Given Invoice Amount = RO 2500 Term = 3/12, n/30

Q: Crossings Company regularly buys merchandise from Best Company and is allowed trade discounts of 20%…

A: Trade discount is one of type of discount which is used by a manufacturer to provide benefit to…

Q: Calculate the amount of discount paid. Ordinary EOM ROG

A: Discount is the amount of money which a buyer gets from the purchases which has been made by him or…

Q: A retailer buys merchandise from a supplier with an invoice amount of $12,800. The terms of the sale…

A: Discount amount = Invoice amount x discount rate = $12,800 x 5% = $640

Q: When using perpetual inventory system, which of the entry or entries correctly record(s) the return…

A: The correct answer is:

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: A retailer purchases some merchandise with an invoice price of $19,900 and terms of sale of 5/15,…

A: Discount on sales value: When the customer pays the amount within discount period then customer is…

Q: On March 1, ZCX company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what…

A: Lets discus basic things. Seller for the purpose of getting early payment from the buyer, gives the…

Q: You purchase goods on an invoice dated July 5 with terms of 4/15, n/45 ROG. If you receive the goods…

A: Answer - Part 1 - Computation of the last day of the discount period - Last day of discount period…

Q: A retailer purchases some merchandise with an invoice price of $19,700 and terms of sale of 5/15,…

A: Given: Price of the invoice = $ 19,700 Partial payment = $ 10,800 Sales term = 515,n45

Q: An invoice for 600 for October 4 And have sales term of 2/10 ROG the merchandise arrive October 6…

A: Sales term 2/10 means if payment is made before 10 days 2% discount will be received.

Q: On December 1, BCX company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30,…

A: The discount is given to the customers so as to receive payment from customers on the early basis.

Q: Merchandise received on July 20 is charged to the store on an invoice dated July 8 for $1,254 with…

A: Merchandising is the process to bringing goods for the selling purpose into market.

Q: Jacob Co. sells merchandise on credit to Isaiah Co. for $9,700. The invoice is dated on May 1 with…

A: 1/15 means 1% discount will be there if payment is made with in 15 days and no discount after 15…

Q: Apple Co sells merchandise on credit to Zea Co in the amount of 8,000. The invoice is dated on…

A: The term 1/15, net 45 means 1% discount till 15 days of date of invoice.

Q: Find the outstanding balance due at the end of the credit period.

A: Discount: discount is the reduction is the price of a good given by the seller to the buyer There…

Q: The buyer received an invoice from the seller for merchandise with list price of RO 3500 and credit…

A: Amount of discount=Invoice amount×Rate of interest=RO 3500×2%=RO 70 Thus, the amount of discount…

Q: A sofa is sold for OMR 400 dated October 5th, and terms of payment on ordinary dating 3/15, n/30…

A: The invoice is prepared as a promise not that payment will be made on the written date with all…

Q: ou purchase goods on an invoice dated July 5 with terms of 4/15, n/45 ROG. If you receive the goods…

A: The last day of the discount period represents the last day on which the customer has to pay the…

Q: The invoice date for a bill is April 14 with the terms 2/15 ROG. If the goods were received on June…

A: Discount date: April 29 Due Date: May 19

Q: Maxie Company regularly buys merchandise from Dawson Suppliers and is allowed a trade discount of…

A: Solution 5-1: Amount debited to materials if purchase discount is treated as income = P100,000 *…

Q: You purchase goods with a net price of $240. The invoice is dated October 7 with terms of 3/20,…

A: (a) Cash discount = Net price * Cash discount percentage Cash discount = $240 * 0.03 Cash discount =…

Q: On August 5, John's furniture makes a purchase of $3200 for chairs from a wholesaler. The purchase…

A: This question deals with the concept of discount for early payment for purchase. There is various…

Q: PLEASE SHOW ALL WORK You purchase goods on an invoice dated July 27 with terms of 3/10 EOM.…

A: The invoice is prepared to record the amount due from customers agains credit sales and it also…

Q: an invoice dated oct 15 shows list price of $82 for the merchandise plus $30 shipping and handling.…

A: Net purchase price = List price - trade discount = $82 - 82*20% = $65.60

Q: How do you find the date goods are received, last day of discount, and end of credit period when the…

A: Compute the date of goods received: The invoice is dated for November 27th. Hence, the goods are…

Q: A retailer buys merchandise from a supplier with an invoice amount of $12,800. The terms of the sale…

A: 6/20 net 30 means that 6 percent discount will be given if payment is made with in 20 days and no…

Q: The buyer received an invoice from the seller for merchandise with list price of RO 3500 and credit…

A: Solution:- Introduction:- Findings as follows:- Buyer received an invoice from the seller for…

Q: A company makes a credit sale of $1,000 on June 13 according to the payment terms 5/10, n/30. On…

A: Payment terms of 5/10, n/30 states that if the payment is made within 10 days then the buyer is…

Q: A man received an invoice for washing machine for $455 dated April 17, with a sales term of 2/10…

A: Sales on terms like 2/10 EOM means that if payment is made within 10 days of transaction of…

Q: When is the last day the buyer can get the cash discount? If the buyer decides to pay for the…

A: 1. The Buyer can discount till 10 days from billing date. Billing Date = June 4 Last day the buyer…

Q: On 6th August, Tasha purchased goods on credit from Nisha Ltd, with a list price of $3,360, less…

A: The cash balance due to suppliers is calculated after adjustment for purchase returns, and purchase…

Q: ry 2018, Megamart company grants an allowance to a Max traders, a customer of RO 2,600 for the goods…

A: In the given situation, Mega-mart company is granting an allowance to max traders for RO 2,600 as…

Q: As a buyer for the J&J company, you receive an invoice with terms 3/10, EOM, net 60. The invoice…

A: 1. 3/10 EOM means buyer can get the cash discount of 3% if he pays the amount within 10 days from…

Question

A buyer receives merchandise on September 7th that is invoiced for $3,250. The date on the invoice is August 2nd and the terms are
3/15 ROG. How much is due if the buyer pays the bill on September 24th?
Answer:
A buyer receives the bill for $2,500 of merchandise from a vendor. The date on the invoice is January 15th and the terms are net. How
much is due to the vendor and what is the due date?
Select one:
O a. $2,450 on January 30th
b. $2,500 on January 30th
c. $2,450 on February 14th
d. $2,500 on February 14th
Merchandise received on March 2nd with a total quoted cost of $4,000 and transportation costs of $200 was billed on an invoice dated
February 6th. The terms on the invoice were 2/10 ROG, FOB Destination, Charges Reversed. How much was due to the vendor if the
buyer paid on February 26th?
Answer:
A buyer receives merchandise on April 2nd that is invoiced for $8,200. The date on the invoice is April 27th and the terms are 2/10
EOM. What is due if the buyer pays by May 15th?
Select one:
a. $8,000
b. $7,380
c. $8,200
d. $8,036
e. $8,364

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

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

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?
Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.
On January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received payment on January 18. Which journal would the company use to record this transaction on the 18th? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
A retailer returns $400 worth of inventory to a manufacturer and receives a full refund. What accounts recognize this return before the retailer remits payment to the manufacturer? A. accounts payable, merchandise inventory B. accounts payable, cash C. cash, merchandise inventory D. merchandise inventory, cost of goods sold
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
If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the inventory for a full refund, and received an allowance for $65, how much discount would be applied if the customer remitted payment within the discount window?
Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
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?
Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.
A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize this sales return (disregarding the merchandise condition entry) if the return occurs before the customer remits payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, merchandise inventory D. accounts receivable, cost of goods sold
Lamplight Plus sells lamps to consumers. The company contracts with a supplier who provides them with lamp fixtures. There is an agreement that Lamplight Plus is not required to provide cash payment immediately and instead will provide payment within thirty days of the invoice date. Additional information: Lamplight purchases thirty light fixtures for $20 each on August 1, invoice date August 1, with no discount terms Lamplight returns ten light fixtures (receiving a credit amount for the total purchase price per fixture of $20 each) on August 3. Lamplight purchases an additional fifteen light fixtures for $15 each on August 19, invoice date August 19, with no discount terms. Lamplight pays $100 toward its account on August 22. What amount does Lamplight Plus still owe to the supplier on August 30? What account is used to recognize this outstanding amount?
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?