Merchandise subject to terms 4/15, n/28, FOB shipping point, is sold on account to a customer for $35,000. What is the amount of the cash discount allowed in case the customer pays within the discount period? Select one: a. $1,400 b. $9,800 c. $1,500 d. $5,250

Merchandise subject to terms 4/15, n/28, FOB shipping point, is sold on account to a customer for $35,000. What is the amount of the cash discount allowed in case the customer pays within the discount period? Select one: a. $1,400 b. $9,800 c. $1,500 d. $5,250

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 13Q: If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the...

See similar textbooks

Related questions

Q: Merchandise subject to terms 3/10, n/25, FOB shipping point, is sold on account to a customer for…

A: When customers pay within the stated discount periods, sales discounts (if offered by sellers)…

Q: Purchase-Related Transactions The Wheatland Company purchased merchandise on account from a…

A: 1/10,n/30 term means that if payment is made within 10 days from purchase, 1% of discount will be…

Q: Elkhorn Company purchased merchandise on account from Springhill Company for $42,000, terms 2/10,…

A: Accounts payable are the suppliers from whom a company purchases its raw material or input stock. In…

Q: Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for…

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

Q: net sales from the above transactions? 12. Silver Co. sold merchandise to Bronze Co. on account,…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: On January 15, Nifty Company sells merchandise on account to Martinez Associates for $5,000 with…

A: COncept - The term 3/10, n/30 Indicates that, If the payment is made within 10days then the…

Q: Rolfes Company purchased merchandise on account from Springhill Company for $6,300, terms 1/10o,…

A: Payment due=Purchase-Purchase return=$6,300-$1,600=$4,700

Q: Merchandise subject to terms 3/10, n/30, FOB shipping point, is sold on account to a customer for…

A: Sales discount allowable refers to the discount allowable expense that can be allowed to the…

Q: Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for…

A: Sales discounts: The merchandisers offer a reduction in sales price on initial sales, to accelerate…

Q: Merchandise with a sales price of $4,600 is sold on account with terms 2/10, n/30. The journal entry…

A: Journal: It is the first step of recording financial transactions. It is used to prepare the…

Q: Purchase-Related Transactions The Stationery Company purchased merchandise on account from a…

A: Introduction: An invoice is a type of business document that details and records transactions…

Q: Merchandise subject to terms 1/10, n/30, FOB shipping point is sold on account to a customer for…

A: Net sales = sales - credit memorandum = 15000 - 5000 = P10000

Q: Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. Pound Co. paid the…

A: Term 2/15, n/45 represent that the payment is due in 45 days and if the payment is made by the…

Q: A sales invoice included the following information: merchandise price, $4,200; terms 1/10, r/eom;…

A: Introduction:- Cost of merchandise includes as follows:- merchandise purchase price - purchase…

Q: Grayson Co. sold merchandise to Chang Co. on account, $9,250, terms 2/15, n/30. The cost of…

A: The term 2/15, n/30 is used to state the discount policy and the credit period of sales. It means…

Q: Merchandise With a sales price of $5000 is sold on account with terms 2/10, n/30. The journal entry…

A: Step 1: The sale of merchandise on account simply means that the goods have been sold on credit.…

Q: Merchandise is sold on account to a customer for $13,600, terms FOB shipping point, 2/10, n/30. The…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: transportation is prepaid by the seller, and that the invoice is paid within the 20. A sales invoice…

A: Discount is provided if the payment is made within the specified period.

Q: need help with this ASAP, thanks. A sales invoice included the following information: merchandise…

A: The buyer can avail discount if he makes the payment within the discount period.

Q: A Company purchased P3,600 of merchandise on account, terms 2/10, n/30. If payment was made after…

A: Purchase price = P 3600 Payment after expiration of the discount period

Q: Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for…

A: Given: Payments terms of 2/10, n/30, means that discount of 2% is valid for 10 days from the date of…

Q: Humble Co. sells merchandise on credit to Wise Co in the amount of P9,600. The invoice is dated on…

A: ''1/ 15'' means the buyer can take 1 % discount advantages,if he pays the dues with in 15 days/

Q: Transactions for Buyer and Seller Wilmington Co. sold merchandise to Chang Co. on account, $4,450,…

A: Journal entry : It is prepared to record the financial and non-financial transactions of the…

Q: Merchandise with a sales price of $1,100 is sold on account with terms 2/10, n/30. The journal entry…

A: Sales discount = $1,100 x 2% Sales discount = $22

Q: Merchandise with a sales price of $5,600 is sold on account with terms 2/10, n/30. The journal entry…

A: Credit terms 2/10,n/30 means if customer will pay in 10 days, then he will get a discount of 2%,…

Q: Silver Co. sold merchandise to Bronze Co. on account, P23,000, terms 2/15, ne 45. The cost of the…

A: The amount of a company's gross sales minus returns, allowances, and discounts is known as net…

Q: Merchandise is sold on account to a customer for $14,100, terms FOB shipping point, 2/10, n/30. The…

A: FOB: FOB stands for free on board. FOB is term that determines the person who is liable for damage…

Q: Purchases transactions Elkhorn Company purchased merchandise on account from Springhill company for…

A: Cash required for the payment= Net purchases - Discount where, Net purchases = Goods purchased -…

Q: Merchandise with a sales price of $3,000 is sold on account with terms 2/10, n/30. The journal entry…

A: Journal entries refer to the recording of transaction in an appropriate way. With the help of…

Q: Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for…

A: Introduction:- Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a…

Q: Barans Company purchased merchandise on account from Springhill Company for $12,800, terms 2/10,…

A: Amount due after merchandise return = $12,800 - $3,200 = $9,600

Q: Sales-Related Transactions Merchandise is sold on account to a customer for $16,500, terms FOB…

Q: A sales invoice included the following information: merchandise price, $11,800; terms 1/10, n/eom;…

A: Sales - Return = Net Sales Merchandise Price = $11,800 Prepaid Freight = $560 Merchandise…

Q: Purchase-Related Transactions Oppenheimer Company purchased merchandise on account from a supplier…

A: Discount is a benefit offered by a seller to the buyer for the payment done within the time period…

Q: You purchase goods with a net price of $240. The invoice is dated October 7 with terms of 3/20,…

A: (a) Cash discount = Net price * Cash discount percentage Cash discount = $240 * 0.03 Cash discount =…

Q: Merchandise is sold on account to a customer for $18,300, terms FOB shipping point, 1/10, n/30. The…

A: Accounts receivable: It is a current asset of an organization. It is the amount due from customers…

Q: What is the amount of sales from the above transactions

A: Discount: - When ever we buy something, we ask the seller to reduce the price of the item. But…

Q: Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. Pound Co. paid the…

A: Credit Term 2/15, net 45 means the Credit period is 45 Days dollar company has to make the payment…

Q: After the amount due on a sale of $28,000, terms 2/10, n/eom, is received from a customer within the…

A: a.

Q: Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for…

A: Term 2/10, n/30 represent that the payment is due in 30 days and if the payment is made by the…

Q: . Sales on account, with 2/10, n/30 cash discount terms. (a) Merchandise is sold on account for…

A: Ledger (T - Account) The purpose of preparing the ledger account is to know the balance which are…

Q: A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays…

A: Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains…

Q: Xanadu Company purchased merchandise on account from Springhill Company for $7,900, terms 2/10,…

A: The payment term is 2/10, n/30. So the discount is 2% if the payment is made within the discount…

Q: Assume that a company records purchases net of discount. If the company bought merchandise valued at…

A: Purchases are recorded net of discount which means Accounts payable will be recorded as net of…

Q: transactions for Buyer and Seller wilmington Co. sold merchandise to Angelleti Co. on account,…

A: To keep track of the financial transactions, journal entries are utilized. Your journal entries are…

Q: Merchandise subject to terms 1/10, n/30, FOB shipping point is sold on account to a customer for…

A: Net sales = sales - credit memorandum = 15000 - 5000 = P10000

Q: Purchases Transactions Barans Company purchased merchandise on account from Springhill Company for…

A: Credit terms 1/10, n/30 means if due amount will be paid in 10 days, then 1% discount will be…

Question

Select one:

a. $1,400

b. $9,800

c. $1,500

d. $5,250

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
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
A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300. Shipping charges are $100. The terms of the sale are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the seller record for these transactions?
If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the inventory for a full refund, and received an allowance for $65, how much discount would be applied if the customer remitted payment within the discount window?
A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays within the discount window, how much will the retailer remit in cash to the manufacturer? A. $19.50 B. $630.50 C. $650 D. $195
Sold goods for $650, credit terms net 30 days. Which journal would the company use to record this transaction? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
Journalize the following transactions in general journal form. a. Bought merchandise on account from Brewer, Inc., invoice no. B2997, 914; terms net 30 days; FOB destination. b. Received credit memo no. 96 from Brewer, Inc., for merchandise returned, 238.