Question
Asked Feb 26, 2019
Cash Discount Calculations
On June 1, Forest Company sold merchandise with a list price of $30,000. For
each of the sales terms below, determine the proper amount of cash received:
Credit Terms Date Paid
1 2/10, n/30
2 1/10, n/30 June 15
3 1/15, n/30 June 14
4 n/30
June 8
June 28
4
0
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Cash Discount Calculations On June 1, Forest Company sold merchandise with a list price of $30,000. For each of the sales terms below, determine the proper amount of cash received: Credit Terms Date Paid 1 2/10, n/30 2 1/10, n/30 June 15 3 1/15, n/30 June 14 4 n/30 June 8 June 28 4 0

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Step 1

Transaction 1: Amount received within the discount period.

Cash received = $30,000 × (100% -2%)

                           =$29,400

 

Transaction 2: Amount received after the discount period.

Cash received = $30,000 ×100%

                           =$30,000

Step 2

Transaction 3: Amount received within the discount period.

Cash received = $30,000 × (100% -1%)

                           =$29,700

Transaction 4: Amount received after the ...

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