If you are the seller will you provide discount for customers? Why or why not? What type of discount will you provide for your customers? How will you account for this discount? Answer this by giving a sample problem including the debit and credit entries. If you are the buyer, will you get discounts for your suppliers? Why or why not?

Q: Does Quickbooks offer online payment processing? What would be the advantages and disadvantages of…

A: Quick  Books Online provides business owners with a convenient remote access option. You, your…

Q: Overall, do you believe that extending credit to customers is a good business practice?  Why or why…

A: Credit policy:   It is the policy of the business to provide goods and services on credit to its…

Q: The business needs to record the trade discount in the book of account”. Question Do you agree…

A: Discount means the amount which is not required to be paid or received. Discount is deducted to find…

Q: CASE SUMMARY: Retailers commonly track customer's shopping patterns and target them with special…

A: Now it becomes a trend to track the customer's shopping pattern behavior. So that the company can…

Q: Determine the decision nature of each of the following issues: Will we purchase on credit or will we…

A: Purchase decision can be defined as the thought process that leading a consumer from identifying a…

Q: Some business transactions purchase goods and services from the seller, on credit. The buyer of…

A: Purchase of Merchandise on Account - Purchases on Accounts means Inventory purchase without paying…

Q: From the following examples, select which one is a transaction. a. a seller receiving payment from a…

A: Introduction : In simple words, transaction refers to a commercial activity in which two independent…

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: When offered with single trade discounts, discount series, and cash discount, would you avail of…

A: Single trade discounts- are discounts that a supplier offers  to customers when  specific condition…

Q: Manufacturers, distributors, wholesalers, and retailers usually sell goods on credit rather than for…

A: Discount is given by seller to the buyer of goods and services. Discount reduces the amount of…

Q: Before taking out a consumer loan, you should be sure the purchase is compatible with your financial…

A: We may not always have the funds necessary to complete some tasks or purchase certain items.…

Q: Owner wants to purchase larger percentage of goods on credit. what advice would you give?

A: Goods purchase on credit: Goods are purchased by the company to sell by adding profit margin. Or…

Q: Sales Returns and Sales Allowances. What are Sales Discounts? What are their respective normal…

A:

Q: What are the ways that payments by a seller to a customer is done?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: Based on the relationship and agreement with the vendors, what are the 2 vendor workflow options to…

A: Vendors plays a very important role in any industry or in organization. Sometimes they are also…

Q: Which of the following is an advantage of using the net price method for recording cash discounts on…

A: At the time of recording credit sales, there can be some provision for discount to be given. So,…

Q: separate account for sales returns and allowances useful to management? If you owned a…

A:

Q: What happens when a client (buyer) returns goods bought on credit

A: A client (buyer) returns goods bought on credit shown here:

Q: When should a seller view a payment to its customer as a refund of part of the price paid by the…

A: Revenue recognition principle:   The revenue recognition principle refers to the revenue that…

Q: How much is the purchase discounts? How much is input tax on purchases? How much is input tax to be…

A: Input tax is the amount of tax which a business pays it to the vendors on the purchasing of the…

Q: Which of the following is most effective to show that you really know your target market? O…

A: If one has to be successful then knowledge of target market is the ore requisite and often the…

Q: What do you understand from trade and cash discount? How to calculate trade discount, cash discount…

A: SOLUTION- To increase sales revenue and attract more buyers, every company offers trade and cash…

Q: Assume you are proprietor of any firm you like. Briefly describe the products or services your firm…

A: If I am the proprietor of a Rice Mill, which procure the paddy from farmers and process paddy to the…

Q: When should companies that sell gift cards to customers report revenue?

A: The Answer

Q: Let's assume the merchandiser (buyer) pays after the discount period expires, how will the vendor…

A: The payment terms of Sports Emporium Sales is 2/10, n/30. It means if payment is done within 10 days…

Q: The objective of is to encourage the buyer to purchase in large quantities and to increase the level…

A: The sellers of the goods adopt various techniques to encourage the buyers to acquire goods in large…

Q: the discount that is being acquired

A: First option is wrong because the cash discount is the discount given by the seller to the buyer for…

Q: Why do businesses often offer "Sales Discounts" to their customers?

A: Sales Discounts -  Sales Discounts are the discounts given by the company to the customers. This…

Q: Sellers use two methods in practice that simplify the process of recording sales discount. What are…

A: Sales:   Sales is an activity of selling the merchandise inventory of a business.

Q: iler of sailing boats, negotiating the payment delays with your providers and clients. How can you…

A: Company has to maintain the sufficient cash to operate and maintain the company without which…

Q: Suppose that you are the credit manager for a small clothing manufacturer. You main responsibility…

A: A credit manager is an individual who is responsible for managing credits of the concerned company…

Q: In which of the following scenario will the supplier be issuing a credit memo?   Granting of…

A: In the case of defective merchandise the buyer may return the goods and in lieu of that supplier…

Q: Which of the following is TRUE with regards to establishing credit limits for customers? O It is…

A: Solution: The true statement with regards to establishing credit limits for customers are as under:…

Q: cash

A: Cash discounts: Cash discounts refer to deductions from the original amount offered by the sellers…

Q: 1) What is the difference between a debit memorandum and a credit memorandum? 2) What is the…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Manufacturers, distributors, wholesalers, and retailers usually sell goods on credit rather than for…

A: Discount:- It is a rebate which one party gives to another party to encourage his own benefit. It is…

Q: If NetSolutions sells a customer some products on account (accounts receivable) and offers a…

A: A discount refers to amount deducted from the normal selling price.

Q: Manufacturers, distributors, wholesalers, and retailers usually sell goods on credit rather than for…

A: The invoice of a transaction includes the terms of payments and the amount of the transaction.…

Q: Which of the following would not result in a reduction of the amount invoiced to a customer when a…

A: The discount decreases the amount of payment to be paid to creditors or to be received from…

Q: What happens when a client (buyer) returns credit-purchased goods?

A: The Answer:

Q: A cash (sales) discount is usually granted to all of the following except a. retail customers. b.…

A: Discount: It refers to the amount or percentage deducted from selling price of the goods at the time…