A set of tools is worth P3,000.00 subject to 10%, 5% and 2% trade discounts. Determine the: a. single equivalent discount rate. (% in 2 decimal places) b. net invoice price. C. amount of trade discount.
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- An item for 10,000, subject to a trade discount of 25%, is paid for within the discount period on terms 2/10, n/30. What is the amount of payment? P10,000 P7,500 P7,400 P7,350If trade Receivables Turnover is 5 ,and average Trade Receivables is 100.000 a) Other Receivables is 40.000b) Cost of Sales is equal to 500.000₺c) Net Sales is equal to 500.000d) Trade Payables is 60.000The full amount of purchase is P530. If a cash discount of 10% is allowed, find the amount of the cash discount and the net amount to be paid. Round to the nearest centavo
- The net price of an item after trade discounts of 34.00%, 13.00%, and 3.50% is $3,520.00. a. Calculate the regular selling price of the goods. $0.00 Round to the nearest cent b. Calculate the equivalent discount rate of the series of discount rates. 0.00 % Round to two decimal placesThis RM15,000 invoice with a date of 18 April 2016 is eligible for a 30% trade discount and cash discount conditions of 9/10, n/30. Find: a) the amount of the trade discount that is being provided. b)the sum of the rebate. c) if the invoice is paid on April 28, 2016, the net payment.Company is contemplating factoring its accounts receivable. The factor will acquire P250,000 of the company’s accounts receivable every 2 months. An advance of 75 percent is given by the factor on receivables at an annual charge of 18 percent. There is a 2 percent factor fee associated with receivables purchased. What is the cost of the factoring arrangement? choose the letter of the correct answera. P30,000.00b. P33,750.00c. P63,750.00d. P103,000.00e. P125,000.00
- For items 9 and 10. An SME sell goods in exchange for a P340,000 note receivable in two years’ time.The cash sale price of the goods is P280,992. The gross profit rate based on cost on the transaction is30%. Other operating expenses amounted to P50,000. 9. How much is the sale revenue recognized by the SME?a. P340,000 b. P280,992 c. P64,844 d. P334,156 10. How much is the profit or loss of the SME?a. P14,844 b. P(14,844) c. P46,988 d. P42,944Merchandise costing $714 is sold for $1,234 on terms 2/10, n/30. If the buyer pays within the discount period, When collection of cash within the 10 days, the debit to Cash will be $McDowell Industries sells on terms of 3/10, net 30. All sales for the year are on credit amount to Ksh 912,500,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 40 days after their purchases. a. What is the days’ sales outstanding? b. What is the average amount of receivables? c. What is the percentage cost of trade credit to customers who take the discount? d. What is the percentage cost of trade credit to customers who do not take the discount and pay in 40 days? e. What would happen to McDowell’s accounts receivable if it toughened up on its collection policy with the result that all non-discount customers paid on the 30th day?
- Percentages need to be entered in decimal format, for instance 3% would be entered as .03. Cooley Industries needs an additional $500,000, which it plans to obtain through a factoring arrangement. The factor would purchase Cooley's accounts receivables and advance the invoice amount, minus a 2% commission, on the invoices purchased each month. Cooley sells on terms of net 30 days. In addition, the factor charges a 12% annual interest rate on the total invoice amount, to be deducted in advance. (This information is shown on the spreadsheet provided.) What amount of accounts receivable must be factored to net $500,000? If Cooley can reduce credit expenses by $3,500 per month and avoid bad debt losses of 2.5% on the factored amount as shown on the spreadsheet, what is the total dollar cost per month of the factoring arrangement? What would be the total cost of the factoring arrangement if Cooley's funding needs rose to $750,000? Would the factoring arrangement be profitable under…Percentages need to be entered in decimal format, for instance 3% would be entered as .03.) Cooley Industries needs an additional $500,000, which it plans to obtain through a factoring arrangement. The factor would purchase Cooley's accounts receivables and advance the invoice amount, minus a 2% commission, on the invoices purchased each month. Cooley sells on terms of net 30 days. In addition, the factor charges a 12% annual interest rate on the total invoice amount, to be deducted in advance. (This information is shown on the spreadsheet provided.) Would it be to Cooley's advantage to offer to pay the factor a commission of 2.5% if it would lower the interest rate to 10.5% annually? Assume the firm needs $500,000. Explain your answer. Assume a commission of 2% and an interest rate of 12%. What would be the total cost of the factoring arrangement if Cooley's funding needs rose to $650,000? Would the factoring arrangement be profitable under these circumstances? Why or…Queen Corp sells on terms of 2/10, n/30. 70% of customers normally avail of the discounts. Annual sales are P900,000, 80% of which is made on credit. Cost of approximately 75% of sales. Use 360 days. What is the average investment in receivable?