Define Sales discounts.

Q: Which one of the following types of discounts is given to the buyer if the buyer makes a bulk…

A: The answer for the question on discounts is given hereunder :

Q: Define Discount Rate.

A: A discount rate is rate which is used to bring future value of cash flow to the present value.It is…

Q: Define the term merchandise returns.

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

Q: purchase discount

A: The purchase term "2/10, n/30" means that 2% discount will be available if the payment is made…

Q: What procedures are followed in the allocation of a discount?

A: When a sale or a purchase is made for an amount  that is less than the sales price, the differences…

Q: Define the term sales mix.

A: The sales mix is a calculation that determines the proportion of each product a business sells…

Q: Explain an example of dollar value LIFO retail method.

A: Under this method, goods are combined into pools and all increases and decreases in a pool are…

Q: What is the LIFO retail method?

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: types of discounts is given to the buyer if the buyer makes a bulk purchase ?

A: The amount that is a fixed rate and deductable from the invoice price is known to be discount. This…

Q: What is the net credit sales?

A: As per the information given,  Net credit sale = Closing balance of Trade and other receivables -…

Q: What is the difference between a sales discount and a purchases discount?

A: The term sales discount is used by the seller, and the term purchase discount is used by the…

Q: Explain purchase accounting

A: Purchase accounting means any premium paid by bidder in excess of the value of books of aims assets…

Q: Explain the argument for and against the use of net price method with respect to purchase discounts?

A: The Net Price Method (NPM) provides information about the purchase discounts lost by the company and…

Q: Define Sale of Receivables.

A: Sales: A sale refers to the operating activity through which the company earns income by selling…

Q: Define discounts (in credit terms)

A: Discount in credit terms is a method utilized to understand receivables for deal with cash flow…

Q: Define Purchase discounts.

A: Purchase discounts: The sellers offer a reduction in purchase price on initial purchases, to…

Q: A sales discount is added in calculating net sales

A: The net sales are reported in the income statement of the company. The expenses would be deducted…

Q: What is the net price and trade discount

A: The offering of multiple trade discounts by the business on the product sold to the customer is…

Q: Explain the difference between a trade discount and a cash discount.

A: Discount is the deduction from the cost of product or service that a seller offers to the buyer…

Q: Define Net purchases.

A: Purchase discounts: The sellers offer a reduction in purchase price on initial purchases, to…

Q: Describe the Issues Pertaining to the Retail Method.

A: Retail inventory method is used to calculate the value of ending inventory by comparing the retail…

Q: Compare standard quantity discounts to cumulative quantity discounts.

A: Cumulative Quantities Discount (CQD) is a system intended to recompense consumers after a definite…

Q: Define Sales revenue.

A:

Q: Trade Discount and Cash Discounts

A: Trade discount Purchase price * Rate of trade discount Purchase price $2,000 Rate of trade…

Q: What is the proper accounting for volume discounts onsales of products?

A: Volume discounts: It is an incentive to encourage for an increase in business. The seller issue…

Q: Define sales allowance.

A: Sales allowances: When a customer agrees to buy defective goods or improperly made then seller gives…

Q: What are the assumption of THE LIFO RETAIL METHOD?

A:

Q: calculate the discount date and the net date for the transaction.

A: Given that the invoice terms are 2/10 , n/45 That is if the invoice is paid in 10 days we get a…

Q: What is purchase returns?

A:

Q: Define Conventional retail method.

A: Definition:   Retail inventory method: It takes into account all the retail amounts that are, the…

Q: What is the definition net cost of purchases?

A:

Q: Retail Pricing Practice Chart

A: Retail price refers to the sum of Cost and Markup. i,e, Cost+Markup= Retail. MU% or markup% =…

Q: Define the term Purchase Volume?

A: INTRODUCTION Purchases  In accounting, the cost of making purchases during a time period with the…

Q: Define the term Retail Terminology.

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: What is the difference between a sales discount, a sales return and a sales allowance?

A: A contra account is an account whose balance is opposite of the general or usual balance of that…

Q: Define Lump-Sum Purchases.

A: When a company purchases a group of assets collectively for a single price, such a transaction is…

Q: Distinguish between the gross and net methods of accounting for purchase discounts.

A:

Q: Define Selling profit.

A: Net income: Net income is the excess amount of revenue that arises after deducting all the expenses…

Q: Define purchase allowance

A: Following is the meaning of a purchase allowance

Q: What is the difference between order discounts and volume discounts?

A: there are different types of discount from the cells that customer can earn close discount are…

Q: Define Sales returns and allowances

A: The Numerical has covered the concept of Sales Return and Sales Allowance.