A company purchases merchandise with a catalog price of $24,500. The company receives a 35% trade discount from the seller. The seller also offers credit terms of 2/10, n/30. Assuming no returns were made and that payment was made within the discount period, what is the net cost of the merchandise?

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

A: Terms 2/8, n/30 indicate that if the payment is made within 8 days discount shall be allowed at the…

Q: Merchandise with a sales price of $4,600 is sold on account with terms 2/10, n/30. The journal entry…

A: Journal:    It is the first step of recording financial transactions. It is used to prepare the…

Q: Abbey Co. sold merchandise to Gomez Co. on account, $42000, terms 2/15, net 45. The cost of the…

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A: Compute the Bell Corporation's net sales amount: Compute the value of discount:

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A: Discount is provided if the payment is made within the specified period.

Q: Winter Company received quotations from two entities for an item of merchandise as follows: From…

A: Trade discount is that discount which is given on list price of product to all the customers. Under…

Q: On January 2, Alfredo Corporation sold merchandise with a gross price of $100,000 to a customer with…

A: Sales discounts  = Gross price x rate of discount

Q: The following information were found from the records of FDN Company: Net Purchases = P90,000…

A: The discount can be of different types as trade discount and cash discount.  The trade discount is…

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A: Merchandise inventory refers to the cost of goods that are readily available for sale at some random…

Q: sales invoice included the following information: merchandise price, $4,500; transportation, $300;…

A: Net Sales  = Sales - Returned

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A: The net realizable value is calculated as difference between gross sales and allowance for doubtful…

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

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A: Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers,…

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

A: Given,  Invoice price = $13,100 Terms = 2/10, n/30

Q: Abbey Co. sold merchandise to Gomez Co. on account, $37000, terms 2/15, net 45. The cost of the…

A: As posted multiple independent questions we are answering only first question kindly repost the…

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

A: The invoice is prepared to record the amount due and other terms related to payment including…

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: On August 3, 2018, Pogi Traders Purchased from a supplier merchandise with a list price of P50,000,…

A: Net purchase value on list purchase = Purchase - purchase return = P50000 - 10000 = P40,000

Q: Kurt Company purchased $5,000 of merchandise from Marilyn Company with terms of 2/10, n/40. What…

A: Step 1 Discount is a benefit made available to the buyer by the seller for making payment against…

Q: uilder Company uses the net price method of accounting for cash discounts. In one of its…

A: Gross sales = List price x (1 - trade discount) x (1 - trade discount) = 500000 x (1 - 0.20) x…

Q: Abbey Co. sold merchandise to Gomez Co. on account, $35,100, terms 2/15, net 45. The cost of the…

A: Gross profit margin is the profit arrived after considering all direct costs relating to the sale of…

Q: On June 1, 2020, ABC Company sold merchandise with a list price of P50,000 to XYZ Company on…

A: Under FOB destination, Goods are taken into inventory costing when goods are delivered to the buyer…

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

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

Q: A retailer purchases merchandise with a catalog list price of $28,600. The retailer receives a 22%…

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

Q: On September 1, Jerry's Lighting purchased merchandise with a list price of $12,500 with credit…

A: Total amount paid = Net Purchase - discount amount where, Net Purchase = list price - purchase…

Q: A buyer received an invoice for P 6,000 dated June 10. If terms are 2/10, n/30, and the buyer paid…

A: Solution Note As per the Q&A guideline we are required to answer the first question only .…

Q: On June 1 of the current year, Pitt Company sold merchandise with a list price of P 5,000,000 to…

A: Trade discount means discount offered on list price of the products. Under FOB shipping point…

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: A large retailer obtains merchandise under the credit terms of 1/10, net 30, but routinely takes 60…

A: Cost of trade credit is also known as cost incurred for not taking the discount. This cost is…

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: If merchandise is bought with a list price of $2,800, subject to a 30 percent trade discount and a…

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: Sandra’s Store purchased merchandise from a manufacturer with an invoice price of $11,000 and credit…

A: Journal: Journal is the primary book of accounts. Transactions are recorded on it day-to-day basis.…

Q: The amount of discount to be recorded if the invoice is paid within the discount period on a…

A: The cash discount would be calculated on the amount, after deducting the trade discount from list…

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

A:

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: Vanessa company purchases merchandise with a list price of P25,000. The company receives a 35% trade…

A: Trade discount = List price x trade discount rate = P25000 x 35% = P8,750

Q: During February 1, 2018 Royal Company sold merchandise with a price of P100,000 towards Dew…

A: Solution Good in transit  Refers to merchandise and other type of inventory that have left the…

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

A: Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains…

Q: Schofield Co. sold merchandise on account to Bernard Retail Inc. for $15,000, terms 2/10, n/30. The…

A: Discount amount (if payment is made within discount period) = Sales x rate of discount

Q: Brightstone Company sold P1,800 of merchandise on account to Light Saver, Inc. on September 1 with…

A: In the given case the sales returns must be deducted from the accounts receivable balance and the…

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: Merchandise costing $714 is sold for $1,234 on terms 2/10, n/30. If the buyer pays within the…

A:

Q: A retailer purchases merchandise with a catalog list price of P15,000. The retailer receives a 15%…

A: Net purchases = Purchases worth - Purchase discount = P15,000 - P15,000 x 15% = P12,750

Q: if merchandise is sold on account to a customer for 1,000 terms fob shipping point 1/10, n/30, and…

A: Discount for early payment is allowed when the customer pays off an amount in a given time period as…

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…