Outback Sporting Goods purchases merchandise on termsof 4/10, n/60. The company has a line of credit that enablesit to borrow money as needed from Northern Bank at anannual interest rate of 13 percent. Should Outback pay itssuppliers within the 10-day discount period if it must drawon its line of credit (borrow from Northern Bank) to makethese early payments? Explain.

Q: Apple Co sells merchandise on credit to Zea Co in the amount of P8,000. The invoice is dated on…

A: Cash Discount Customers are rewarded with cash savings if they pay their bills within a particular…

Q: Roton Inc. purchases merchandise on terms of 2/15, net 40, and its gross purchases (i.e., purchases…

A: Excel Spreadsheet:

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: On June 1, 2018, JULLIES, Inc. sold merchandise with a list price of ₱40,000 to JELLY Corp. on…

A: Net purchase price = List price - trade discount = ₱40,000 - ₱40,000*(1-0.30)*(1-0.20) = ₱17,600

Q: he entry to record the receipt of payment within the discount period on a sale of $2400 with terms…

A: Terms 2/8, n/30 indicate that if the payment is made within 8 days discount shall be allowed at the…

Q: On June 1, Compassion Company sold merchandise with a list price of P 1,000,000 to a customer. The…

A: Trade discount:- A trade discount is referred as the discount amount through which the manufacturer…

Q: Given credit terms of 3/10, n/30 on a sale of $2,000, calculate the sales discount, assuming payment…

A: credit terms: 3/10 - means 3% discount given if payment is made within 10 days

Q: Firms usually offer their customers some form of trade credit. This allowance comes with certain…

A: True price of the invoice is the price after a discount of 1%. Answer: Option c. 1,530.32

Q: Firms usually offer their customers some form of trade credit. This allowance comes with certain…

A: Given that, Free spirit Industries buys  on terms of 1/20, net 45 from its chief supplier It means…

Q: Brimstone Co. purchased 1,865 items at $8.24 each less trade discounts of 26%, 12%. On August 27,…

A: Trade discount is the discount offered to encourage the buyer to purchase the item in bulk quantity.…

Q: On June 1, Compassion Company sold merchandise with a list price of P1,000,000 to a customer. The…

A: The shipping charges are to be paid by the buyer for FOB shipping sale .

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: JIH took delivery of merchandise invoiced at $24,600.00 with terms cash 6, 2/40, n/60. Calculate the…

A: The interest is calculated based on certain terms and conditions. The payment is depends on time…

Q: A sales invoice include the following information: merchandise price, $12,000: terms 1/10, n/oem;FOB…

A:

Q: 2. On June 1, 2020, Pitt Company sold merchandise with a list price of P5,000,000 to Burr on…

A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…

Q: If merchandise is sold on account to a customer for 1000 terms FOB shipping point, 1/10, n/30 and…

A: Discount on merchandise is given by the seller to buyer, when the seller repay the credit early or…

Q: After the amount due on a sale of $29,200, terms 1/10, n/eom, is received from a customer within the…

A: Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers,…

Q: Abbey Co. sold merchandise to Gomez Co. on account, $37000, terms 2/15, net 45. The cost of the…

A: As posted multiple independent questions we are answering only first question kindly repost the…

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

A: Credit terms 2/10 means 2% discount will be given if payment is made with in 10 days

Q: A retail merchandise trader purchased 400 Galaxy mobile phone @ RO 70 each from a Wholesale…

A: Gross purchase = Quantity purchased x Gross price per quantity = 400 x RO 70 each = RO 28000

Q: A retailer purchases some merchandise with an invoice price of $19,900 and terms of sale of 5/15,…

A: Discount on sales value: When the customer pays the amount within discount period then customer is…

Q: Omani Marble Company LLC sells (on credit) OMR 15000 Marble to a retailer with credit terms of 3/10,…

A: Credit terms includes terms and conditions related to credit transactions between the seller and…

Q: Sara Company sold merchandise on credit with a list price of P105,000 and a trade discount of 10%.…

A: Trade discount = list price x trade discount rate = P105,000 x 10% = P10,500 Net sales = list price…

Q: A retailer purchases some merchandise with an invoice price of $19,700 and terms of sale of 5/15,…

A: Given: Price of the invoice = $ 19,700 Partial payment = $ 10,800 Sales term = 515,n45

Q: Kurt Company purchased $5,000 of merchandise from Marilyn Company with terms of 2/10, n/40. What…

A: Step 1 Discount is a benefit made available to the buyer by the seller for making payment against…

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: On December  1, BCX company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30,…

A: The discount is given to the customers so as to receive payment from customers on the early basis.

Q: Makati Co. bills its Valenzuela branch for merchandise at 140% of cost. At the end 2020, the branch…

A: The balance of the Allowance for Overvaluatiion of Branch Inventory account represents the…

Q: SumOne Limited is a retail store with a 30 June year-end. The company recorded the following: 2021…

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

Q: 22. On June 1, 2020, Penny Corp. sold merchandise with a list price of $40,000 to Linn on account.…

A: Invoice value of merchandise = $40,000 (1-0.30) (1-0.20) = $22,400

Q: On June 1, 2020, ABC Company sold merchandise with a list price of P50,000 to XYZ Company on…

A: Under FOB destination, Goods are taken into inventory costing when goods are delivered to the buyer…

Q: A retailer purchases merchandise with a catalog list price of $28,600. The retailer receives a 22%…

A: Discount:  It refers to a percentage that is deducted from the normal selling price of a product.

Q: A large retailer obtains merchandise under the credit terms of 1/10, net 30, but routinely takes 60…

A: Cost of trade credit is also known as cost incurred for not taking the discount. This cost is…

Q: FDN Trading recorded the following events involving a recent purchase of merchandise: Received…

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

Q: Walmart received an invoice of $25,800, dated July 27, with terms of sale 4/15 EOM. Walmart would…

A: 4/15 EOM means that the company can receive 4% discount if it pays in 15 days, otherwise pay the…

Q: The amount of discount to be recorded if the invoice is paid within the discount period on a…

A: The cash discount would be calculated on the amount, after deducting the trade discount from list…

Q: How much is the accounts payable? • How much is the discount if paid in full within the discount…

A: The question pertains to discount allowed on timely payment. Whenever goods are sold on credit the…

Q: Caterpillar purchased merchandise from Alpha Technologies as follows: Invoice date: March 12th…

A: Given that, Invoice date = 12 March  Invoice amount = $4000 Discount = 2%

Q: pple Co sells merchandise on credit to Zea Co in the amount of P8,000. The invoice is dated on…

A: Solution: Sales of term determine the % of discount and term of discount period. Here 1/15 means 1%…

Q: Vanessa company purchases merchandise with a list price of P25,000. The company receives a 35% trade…

A: Trade discount = List price x trade discount rate = P25000 x 35% = P8,750

Q: If merchandise is sold on account to a customer for $1,000, terms FOB shipping point, 1/10, n/30,…

A: Lets understand the basics. Seller for attracting early payment, gives the discount term to the…

Q: Barans Company purchased merchandise on account from Springhill Company for $13,900, terms 2/10,…

A: A. Calculate the amount of cash required for the payment.

Q: merchandise with an invoice amount of $2,800 and received full credit. a.  If Nieman Company pays…

A: In the given question, Springhill Company purchased goods worth $ 12,100 and returned goods worth $…

Q: A company makes a credit sale of $1,000 on June 13 according to the payment terms 5/10, n/30. On…

A: Payment terms of 5/10, n/30 states that if the payment is made within 10 days then the buyer is…

Q: Caterpillar purchased merchandise from Alpha Technologies as follows: Invoice date: March 12th…

A: Here in this question, we are required to calculate how much amount should borrow in order to pay…

Q: Merchandise costing $714 is sold for $1,234 on terms 2/10, n/30. If the buyer pays within the…

A:

Q: Urban Star Sporting Goods must charge 8 percent sales tax on all sales. DATE TRANSACTIONS 20x1 Feb.…

A: Debit what comes in, Credit what goes out. Debit the receiver, Credit the giver. Debit all expenses…

Q: The trader Nizwa Grand mall purchased goods from the trader of Muscat Grade mall OMR 22500. Which of…

A: Purchase = OMR 22500 Credit terms = 1/10, n/30

Q: if merchandise is sold on account to a customer for 1,000 terms fob shipping point 1/10, n/30, and…

A: Discount for early payment is allowed when the customer pays off an amount in a given time period as…

Q: Cruise Industries purchased $10,800 of merchandise on February 1, 2020, subject to a trade discount…

A: a.  Assuming that Cruise uses the perpetual method for recording merchandise transactions, record…