BC Corp purchased goods on account from XYZ Corp for P10,000. Terms: 10%, 2/10, n/30 FOB Shipping point. Freight is P200, freight collect. If ABC uses the net method, the amount of accounts payable to be credited is: a. 10,000 X 10% X 2% b. 10,000 X 90% X 98% c. 10,000 X 90% X 98% minus 200 d. 10,000 X 90% X 98% plus 200

BC Corp purchased goods on account from XYZ Corp for P10,000. Terms: 10%, 2/10, n/30 FOB Shipping point. Freight is P200, freight collect. If ABC uses the net method, the amount of accounts payable to be credited is: a. 10,000 X 10% X 2% b. 10,000 X 90% X 98% c. 10,000 X 90% X 98% minus 200 d. 10,000 X 90% X 98% plus 200

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
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