Adrian the owner of a brewery in Toronto recieve a shipment of barley on August 24, 2014 with an invoice dated August 20, 2014 valued at $30,200 and cash discountpayment terms 2.5/10, n/30, R.O.G. What cash discount would she receive of the invoice is settled on the following dates ? A August 29 ? B September 3? C september17 ?

Cash DiscountA cash discount is a facility offered by a seller to a buyer, in which if a buyer…

Answered: Adrian the owner of a brewery in…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter2: The Accounting Information System

Section: Chapter Questions

Problem 7MCQ: Taylor Company recently purchased a piece of equipment for $2,000 which will be paid within 30 days...

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Blue Barns purchased 888 gallons of paint at $19 per gallon from a supplier on June 3. Terms of the purchase are 2/15, n/45, invoice dated June 3. Blue Barns pays their account in full on June 20. On June 22, Blue Barns discovers 20 gallons are the wrong color and returns the gallons for a full cash refund. Record the journal entries to recognize these transactions for Blue Barns.
Dixon Menswear Shop purchased shirts from Colt Company on May 28, 2019, and received an invoice with a list price amount of 5,000 and payment terms of 2/10, n/30. Dixon uses the net method to record purchases. Dixon should record purchases of: a. 4,000 b. 4,900 c. 5,000 d. 5,100
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?
DCM Clocks received the following two invoices from its supplier: $25,000 on August 29, 2014 and $24,000 on September 8, 2014. If the payment terms on both the invoices were 2.5/10, 1/20, n/60, calculate the amount that must be paid by DCM Clocks to settle both of these invoices on September 18, 2014. David, the owner of a brewery in Toronto, receives a shipment of barley on August 1, 2014 with an invoice dated July 24, 2014 valued at $39,900 and cash discount payment terms 2/10, n/30, R.O.G. What cash discount would he receive if the invoice is settled on the following dates? August 4, August 11, August 24
Starlight, a Kingston based production company, shipped a truck-load of lighting equipment to a client in Halifax. The invoice of $185,000 for the equipment was dated August 2, 2014. The equipment was received by the client on September 10, 2014. If the payment terms were 2.50/10, n/45, R.O.G what cash discount would the client receive if the invoice is settled on the following dates: a. September 10? Round to the nearest cent b. September 25? Round to the nearest cent c. October 10?
Ned's Sheds purchases building materials from Timbertown Lumber for $3,700 with terms of 4/15, n/30. The invoice is dated October 17. Ned's decides to send in a $2,000 partial payment. a) By what date must the partial payment be sent to take advantage of the cash discount? b) What is the net date? c) If partial payment was sent by the discount date, what is the balance still due on the order?
On November 15, a merchant purchased merchandise that he settled with 35% in cash, a payment for $35,050, which corresponds to 40% on March 3 and another for the rest on April 22. Considering charges of 16.8% annually, determine: a) The value of the merchandise on the day of purchaseb) The amount paid on April 22c) Interest or charges for not paying in cash
On 1st November, 2012 Manoj owed $28,754 to his suppliers.During the year he paid his suppliers a total of $1,85,844. On 31stOctober, 2013 he owed $26,189. What was the value of Manoj'scredit purchases in the year to 31st October, 2013.
May Fedor started a delivery service, Fed Deliveries, on July 1, 2015. The following transactions occurredduring the month of July. July 1. She contributed P100,000 cash. July 2. Purchased a used van for deliveries for P120,000 by paying P20,000 cash and signed a two-year notes payable for the remaining balance July 3. Paid P15,000 for office rent for the month July 5. Delivery services amounted to P44,000, half on account July 9. Cash of P2,000 withdrawn by May July 12. Purchased supplies for P1,500 on account July 15. Received cash of P12,500 for services rendered provided on July 5 July 17. Purchased gasoline for P7,500 on account July 20. Received P15,000 from customers of which P5,000 was for past accounts July 23. Made a cash payment of P25,000 on notes payable July 26. Paid P2,500 for utilities July 29. Paid for the gasoline purchased on account on June 17 July 30. Paid P30,000 for employee salaries Use the following accounts: Cash, Accounts…
Milner Family Importers sold goods to Tung Decorators for $30,000 on November 1, 2017, accepting Tung’s $30,000, 6-month, 6% note. Prepare Milner’s November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest.
A Scarlet Company received an invoice for $71,000.00 that had payment terms of 4/5 n/30. If it made a partial payment of $14,700.00 during the discount period, calculate the balance of the invoice. B Three invoices for the amounts of $34,800, $24,000, and $41,550 were received on August 25, 2014, September 24, 2014, and October 17, 2014, respectively. If the payment terms are 3/7, 2/30, n/60, calculate the amount that must be paid on October 24, 2014 to settle all three invoices.
Jim operates Scent Company, a perfume and soap store. During May 2018, the following transactions were completed. TRANSACTIONS May 1 - Jim invested cash of P50,000 and merchandise, P10,000 to open the business. Deposited the amount with PCIB. Official Receipt No. 101 May 3- Purchased merchandise on account from Subic, P13,200. Terms: 2/10, n/30. Purchase Invoice 422. May 4 - Paid rent expense for April, P900; Check No. 200. May 5 - Purchased store supplies on account from Alexis, P550. Terms: 1/10, n/30. Purchase Invoice 510. May 8 - Sold merchandise on account to Rustan, P11,000. Terms: 1/10, n/30; Sales Invoice No. 150.Cost of merchandise was P5,500. May 12 - Paid Subic the amount owed on the May 3 purchase, Check No. 201 May 14 - Purchased merchandise on account from Ong’s Boutique, P27,500. Terms: 1/10, n/30; Sales Invoice No. 801. May 15 - Paid Alexis the amount owed on the May 5 purchase. Check No. 202 May 16 - Recorded cash sales for the first half of May, P33,000. Cost of…

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