Answer only question 2 (iv) Requirement (ii)Trade discount is that discount, which is given to allthe customers on the list price of the products.Single Equivalent trade discount rate calculation isshown below:= (1 – 15%) × (1 – 10%) × (1 – 5%)= 72. 68%So, single equivalent trade discount rate is 72. 68%Requirement (ii)Amount of Trade Discount = Price of goods * Sin,discount rateRM 8750 * 72. 68%= RM 6359. 5So, amount of trade discount is RM 6359. 5 QUESTION 2Neena bought a few electrical appliances at RM8750. She was given trade discounts 15%, 10%and 5% and cash discount terms of 6/5, 4/15, n/30. The invoice date was 18 April 2021 anddelivery charges were RM220.i) Explain the cash discount terms of 6/5, 4/15, n/30.ii) Calculate the single discount equivalent rate to the above trade discounts.iii) Find the amount of trade discount.iv) If the payment was made on 1 May 2021, find the total payment.

If the payment is made on 1 May 2021 , The the Trade discount applicable is 4/15. Since , The…

Answered: iv) If the payment was made on 1 May…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.6E

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Captain Whitman Ship Supplies offers terms of 3/15, net 45. If a purchaser takes the discount and pays on the 10th day, what is the nominal cost of trade credit? Now suppose a purchaser actually pays on the 20th day but still takes the discount. What is the actual nominal cost of the trade credit?
A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays within the discount window, how much will they remit in cash to the retailer? A. $1,250 B. $1,200 C. $50 D. $500
Notes Receivable Link Communications programs voicemail systems for businesses. For a recent project, they charged $135 000. The customer secured this amount by signing a note bearing 9% interest on February 1, 2019. Required: 1. Prepare the journal entry to record the sale on February 1, 2019. 2. Determine how much interest Link will receive if the note is repaid on December 1, 2019. 3. Prepare Links journal entry to record the cash received to pay off the note and interest on December 1, 2019.
( Appendix 5A) Sales Discounts Harry Gardner provides tax services for small businesses. This years tax season has proved especially lucrative for Harry; he earned $45,000 for providing his services. Harry uses terms of 1/10, n/30 in billing his customers. Required: 1. Prepare the necessary journal entries to record the sale, assuming Harry does not expect his customers to pay within the discount period. 2. Prepare the necessary journal entries to record collection of the receivable assuming the customer pays within 10 days. 3. Prepare the necessary journal entries to record collection of the receivable assuming the customer pays after 10 days.
Fatin buys a new café furniture worth RM 9,200. She receives an invoice dated 19 April 2021 with trade discounts of 8% and 2 %. She is offered cash discount terms of, 15/10, n/30. Determine a) the single discount equivalent of the trade discount given. b) the net price after the trade discount. c) the last day to receive the 15% cash discount.
Question 3 Coces, a furniture shop owner, buys a new set of cabinet worth $9,850. He receives an invoice dated 26 October 2019 with trade discounts of 8 percent, 4 percent and is offered cash discount terms 3/15, 2/30, n/60. (i) Calculate the single discount equivalent to the trade discounts given.
1. Riverbed Company sells goods to Danone Inc. by accepting a note receivable on January 2, 2020. The goods have a sales price of $630,700 (cost of $500,000). The terms are net 30. If Danone pays within 5 days, however, it receives a cash discount of $10,700. Past history indicates that the cash discount will be taken. On January 28, 2020, Danone makes payment to Riverbed for the full sales price. a)Prepare the journal entry(ies) to record the sale and related cost of goods sold for Riverbed Company on January 2, 2020, and the payment on January 28, 2020. Assume that Riverbed Company records the January 2, 2020, transaction using the net method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) b)Prepare the journal entry(ies) to record the sale and related cost of goods sold for Riverbed Company on January 2, 2020, and the payment on…
1. Maningkamot ko permi makapasar sports wear regularly buys sweaters from BSA Company and its allowed trade discounts of 20%, and 10% from the list price. Maningkamot ko permi made a purchase during the year and receive an invoice with a list price of P600,000, a freight charge of P15,000 and payment terms and 2/10, n/30. What is the cost of the purchase?
The net price of an item after a trade discount of 12% and 8% was RM3,000. The invoice was dated 23 July 2007 with cash discount terms of 4/10, n/30. i) Find the list price of the item. ii) Calculate the single trade discount rate that is equivalent to the trade discount given
2. RNB Co. bought some items and was given trade discounts of 15% and 10%. The company received an invoice dated 18th April 2015 with cash discount terms of 5/10, 3/15, 2/20 and n/30. On 2nd May 2015 the company padi RM5,513.80. a) Find the single trade discount rate equivalent to the given trade discount rates. (23.5%) b) Find the list price of items. (RM7430.50)
A dealer received an invoice for the purchase of 200 pocket calculators listed at RM30 each and 20 cash-register machines listed at RM500 each. The invoice was dated 2 August 2010. He was offered trade discounts of 12%, 10%, and cash discount terms of 10/10,5/20, n/30. i) Find the single equivalent discount for the given trade discount. ii) If the dealer paid the invoice in full payment on 13 August 2010, find the amount of the full payment
A. On June 1, 2020, Eleno Buray Jr. Forest Products sold merchandise with a Php120,000 list price. Trade Discounts Credit Terms Date Paid a. 30% 2/10, n/30 June 8 b. 40% 1/10, n/30 June 15 c. - 2/10, n/30 June 11 Required: For each of the sales terms, determine the following: a. The amount ofrecorded saleb. The amount ofcash received upon payment

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