A cash (sales) discount is usually granted to all of the following except a. retail customers. b. retailers. c. wholesalers. d. All of these are granted discounts Answer the question and explain why did you pick this answer

A cash (sales) discount is usually granted to all of the following except a. retail customers. b. retailers. c. wholesalers. d. All of these are granted discounts Answer the question and explain why did you pick this answer

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 26MC: A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize...

See similar textbooks

Related questions

Q: Prepare a Three Column Cash Book from the following transactions Explain the primary goal of…

A: Cash Book The purpose of preparing the cash book which can be know the details total receipts and…

Q: CASE SUMMARY: Retailers commonly track customer's shopping patterns and target them with special…

A: Now it becomes a trend to track the customer's shopping pattern behavior. So that the company can…

Q: Using T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases…

A: Calculate purchase discoounts:Purchase discount =( Purchase - Purchase returns and allowance)*…

Q: When a company makes a sale and accepts a credit card payment from a customer, the company: Multiple…

A: Increase in debits should be debited and increase in expenses should be debited. Increase in…

Q: For each of the following statements, fill in the blanks with the correct account names. A retailer…

A: Retailer is the person who deals in purchase and sale of merchandise. At the time of credit…

Q: The cash discount also known as purchase discount or sale discount is given to customers for: a.…

A: The cash discount, often known as purchase discount or sale discount, is a type of discount.

Q: When offered with single trade discounts, discount series, and cash discount, would you avail of…

A: Single trade discounts- are discounts that a supplier offers to customers when specific condition…

Q: The cash discount also known as purchase discount or sale discount is given to customers for: a.…

A: Cash Discount The term cash discount which is applicable for both sales and purchase transaction of…

Q: Which one of the following statements about trade discount is true? It is recorded in books of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Using T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases…

A: T-account: The condensed form of a ledger is referred to as T-account. The left-hand side of this…

Q: ssuming that you are a retail merchandiser. You bought goods from wholesale merchandiser under the…

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

Q: The total of settlement discount granted column in cash receipts journal will be posted to the...in…

A: Settlement discount is offered to the debtors for the prompt payment and is similar in nature as…

Q: A. Sales allowance B. Purchase returm i. A customer returns merchandise for a full refund ii. A…

A: Introduction: Income statement: All revenues and expenses are shown in Income statement. It tells…

Q: The entry to record the receipt of payment within the discount period on a sale of $2400 with terms…

A: A firm makes sales to its customer and allows a discount for making payment early. The discount on…

Q: The buyer received an invoice from the seller for merchandise with list price of RO 7500 and credit…

A: Understanding the payment terms: The payment terms of 2/10 and n/30 means the discount of 2% is…

Q: If you are the seller will you provide discount for customers? Why or why not? What type of discount…

A: solution concept In the trade transaction ,the practice of giving and taking…

Q: If any discount is offered for early payment of invoice will be called as a. Cash discount b. Trade…

A: An early payment discount – also known as a prompt payment discount or early settlement discount /…

Q: After the amount due on a sale of s33,900, terms 2/10, neom, is received from a customer within the…

Q: plain why it is important for a company to keep track of how much money in discounts is given out?…

A: . Percent of cash discount since 3/15, n/45 is the credit term between the seller and buyer which…

Q: The cash discount (also known as purchase discount) is given to customers for a. Frequent purchases…

A: Discount is known as allowance or reduction benefit is given to customers for their payment for…

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

Q: Which of the following cases show(s) the situation(s) that the list price is higher than the net…

Q: Which of the following would not be an appropriate heading for a column in the cash receipts…

A: Answer to Question: C) Creditors…

Q: A retail store received cash and issued gift certificates that are redeemable in merchandise. How…

A: Solution: When cash is received in lieu of gift certificates, deferred revenue is credited. When…

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: The objective of is to encourage the buyer to purchase in large quantities and to increase the level…

A: The sellers of the goods adopt various techniques to encourage the buyers to acquire goods in large…

Q: romissory notes can be used in which of the following cases? a. Lending money b. All the given…

A: Explanation: Promissory note: A promissory note is a legal financial instrument that has a written…

Q: A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize…

Q: Identify whether each of the following transactions, are accrual, deferral, or neither. Sold goods…

A: Sales made but payment not received is accrued revenue.

Q: Merchandise subject to terms 4/15, n/28, FOB shipping point, is sold on account to a customer for…

A: Merchandise subject to terms 4/15, n/28, means there will be a cash discount of 4% if payment is…

Q: To intensify the collection of receivables, Kate's Trading offered 2/10, n/30 to customers. What…

A: The discount is the benefits given by reduction in the amount to be paid.

Q: • Sales, Purchases, Cash Receipts, Cash Disbursements, and General Using the following as possible…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: A discount granted to a customer for paying his account promptly O a. Cash Discount O b. Trade…

A: Discount price is the price offered to the buyer after deducting discount amount from the selling…

Q: Sales-Related Transactions After the amount due on a sale of $172,675, terms 2/10, n/30, is received…

A: Sales means when goods and services are sold to customers. Sales return means when customer returns…

Q: A deduction allowed to wholesalers and retailers from the price of merchandise listed in catalogs is…

A: A deduction allowed to wholesalers and retailers from the price of merchandise listed in catalogs is…

Q: (A) Zafar Bookstore returned certain merchandise, which it had purchased, from National Book…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Enter the letter for each term in the blank space beside the definition that it most closely…

A: Meaning of Sales discount Sales discount is the amount of discount given on the amount of sales made…

Q: cash

A: Cash discounts: Cash discounts refer to deductions from the original amount offered by the sellers…

Q: Effective credit management involves establishing credit standards for extending credit to…

A: Company provide credit to customers and discount to customers to increase sales.

Q: 1) What is the difference between a debit memorandum and a credit memorandum? 2) What is the…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: When a customer uses a credit card such as MasterCard or VISA to buy merchandise in a store, the…

A: Solution: When a customer pays for purchase using credit card, it is a cash sales for the seller as…

Q: When a seller receives payment from a customer who takes the discount for paying early, the journal…

A: When a seller receives payment within discount period, cash account will be debited with accounts…

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

A: Formula: Discount allowed = List price x Discount rate

Q: A. Sales allowance B. Purchase return i. A customer returns merchandise for a full refund i1. A…

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: Explain the primary goal of maintaining a cash book. Use a case study company of your own choice to…

A: The answer is stated below: Note: Answering the first question as there are multiple…

Q: Manufacturers, distributors, wholesalers, and retailers usually sell goods on credit rather than for…

A: Discount:- It is a rebate which one party gives to another party to encourage his own benefit. It is…

Q: If NetSolutions sells a customer some products on account (accounts receivable) and offers a…

A: A discount refers to amount deducted from the normal selling price.

Q: Which of the following statements are true regarding sales discounts (i.e., discounts customers…

Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

A cash (sales) discount is usually granted to all of the following except

a. retail customers.

b. retailers.

c. wholesalers.

d. All of these are granted discounts

Answer the question and explain why did you pick this answer

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

Conduct research on a real-world retailers trade discounts and policies, and discuss the following questions. Which company did you choose? What do they sell? What is a trade discount? What products are subject to a trade discount? Describe the discount terms/program in detail. Give examples. Are there any restrictions? What incentive does this company have to give a trade discount? How does this discount benefit the buyer? If the buyer had to choose between receiving a trade discount or regular cash purchase discount, which would benefit them more? Why?
If a customer purchases merchandise on credit and returns the defective merchandise before payment, what accounts would recognize this transaction? A. sales discount, cash B. sales returns and allowances, cash C. accounts receivable, sales discount D. accounts receivable, sales returns and allowances
If a customer pays with a credit card and the service has been provided, which of the following accounts will be used to record the sales entry for this transaction? A. Cost of Goods Sold, Merchandise Inventory, Sales Revenue B. Sales Revenue, Credit Card Expense, Accounts Receivable C. Accounts Receivable, Merchandise Inventory, Credit Card Expense D. Cost of Goods Sold, Credit Card Expense, Sales Revenue
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
a) Explain in detail different types of documentation that the business would expect to change hands in purchase, sales, purchase returns and sales returns etc. b) Show the model of atleast one Credit Sales invoice, Purchase invoice, Debit note and Credit note. (you can use imaginary figure) c) What are policies for trade discount/cash discount, Is there any products are subject to trade discount and why? Explain the terms and conditions in detail.
Enter the letter for each term in the blank space beside the definition that it most closely matches. Sales discount Credit period Discount period FOB destination FOB shipping point Gross profit Merchandise inventory Purchase discount Cash discount Trade discount _______ 1.Goods a company owns and expects to sell to its customers. _______ 2.Time period that can pass before a customer’s payment is due. _______ 3.Seller’s description of a cash discount granted to buyers in return for early payment. _______ 4.Reduction below list or catalog price that is negotiated in setting the price of goods. _______ 5.Ownership of goods is transferred when the seller delivers goods to the carrier. _______ 6.Purchaser’s description of a cash discount received from a supplier of goods. _______ 7.Reduction in a receivable or payable if it is paid within the discount period. _______ 8.Difference between net sales and the cost of goods sold.…
When a seller receives payment from a customer who takes the discount for paying early, the journal entry will include a debit to sales discount credit to sales debit to sales
If a customer pays with a credit card and the service has been provided, which of the following accounts will be used to record the sales entry for this transaction? Elaborate in your response asides from choosing the correct choice. A. Cost of Goods Sold, Merchandise Inventory, Sales Revenue B. Sales Revenue, Credit Card Expense, Accounts Receivable C. Accounts Receivable, Merchandise Inventory, Credit Card Expense D. Cost of Goods Sold, Credit Card Expense, Sales Revenue
To intensify the collection of receivables, Kate's Trading offered 2/10, n/30 to customers. What discount is being offered by the company? purchase discount cash discount sales discount trade discount
A deduction allowed to wholesalers and retailers from the price of merchandise listed in catalogs is called a cash discount. Please explain with full explanation a. True b. False
The cash discount (also known as purchase discount) is given to customers for a. Frequent purchases b. Bulk purchase c. Early and prompt payments d. Frequent sales
Some business transactions purchase goods and services from the seller, on credit. The buyer of these goods and services, in good faith, intends to pay for the merchandise acquired or services rendered, on time. However, the seller knowing this is not always possible, will provide an incentive to the buyer. After reading “Purchase of Merchandise on Account”, page 146 to 148, illustrate and explain the ‘incentive’ a buyer receives to pay his bill.