The collection of a $1,200 account after the 2 percent discount period will result in a
Q: Complete the following table for the simple discount notes. Use the ordinary interest method. (Round…
A: Maturity Value (MV) = $6000 Discount Rate ( r ) = 3.5% Time (n) = 160 days = 160/12 =…
Q: A store will give you a 4.00% discount on the cost of your purchase if you pay cash today.…
A: Given information : Discount rate = 4% Time period for payment due = 1 month Purchase price…
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A: The implicit rate of borrowing is the cost paid in the terms of discount by the customer if the…
Q: An item is purchased for $2500 with a down payment of $500. There is a finance charge of $ 150…
A: Purchase Price = $2,500Down Payment = $500 Calculation of Loan Amount (PV):
Q: be received and recorded, and that the month is 30 days long. (Round your answers to the nearest…
A: Finance charges are a way for a lender to get compensated for supplying cash or giving credit to a…
Q: A price tag of P1200 is specified if paid within 60 days but offers a 3% discount for cash in 30…
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Q: The bank discount of a 90 - day simple discount note for $ 18,000 with an 8\% discount rate is :
A: The conceptual formula is:
Q: (Assume If credit terms of "2/10, net 40" are offered, the approximate cost of not taking the…
A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…
Q: A company is offering a 4.9% discount to receivables if they agree to pay within 45 days. The…
A: A credit discount is a discount offered to the borrower of money by the lender of money if the…
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A: Given: Face value =$3000Purchase price =$2900
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: The average balance method used the average balance in a month to calculate the finance charges.…
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A: Cash discount terms 4/10 net 30 means payment has to be made within 10 days of purchase to avail…
Q: In credit terms of 2/10, n/30 the "2" represents the A. Number of days in the discount period O B.…
A: Note: 2/10, n/30: Here, 2 represents the discount rate if payment is made within ten days. And if…
Q: Find the discount and proceeds on a $3,240 face-value note for six months if the discount rate is…
A: Net Proceeds: It is the amount received by an individual after deducting a discount and expenses.
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: As per the previous balance method Calculation of finance charges for a billing cycle, uses the…
Q: what simple rate is equivalent to thr simple discount rate of 6% in discounting an amount of 1,000…
A: 6% discount for 3 months Rate for single month=6/3=2% Annual simple rate =12×2=24%
Q: A particular credit card calculates interest using the unpaid balance method. The monthly interest…
A: Interest is calculated on unpaid balance method. Interest rate = 1.57% on the unpaid balance on the…
Q: elect the correct answer and explain What is the discount to a promissory note with a face value of…
A: In this we have calculate the discount on note using simple interest rate given.
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A: The question is based on the concept of the time value of money, the discounted value is calculated…
Q: The enterprise has discounted the bills receivable with a nominal value of 2750 with an internal…
A: Bill receivable is the bill that enforces that the customer has not paid money yet in exchange for…
Q: PLEASE SHOW ALL WORK For terms of 8/10, n/60 determine the annual rate you, in effect, pay the…
A: Credit terms = 8/10 , n/60 means if payment is made within 10 days then supplier will offer 8%…
Q: Insert an answer for each of the following p= $ 3,200, r=.023, t= 3months. interest ?…
A: solution answer to 1 interest =p * r * 3/12 =$3200 *…
Q: You have an account with a $1000 credit limit that charges 12.25% interest using the average daily…
A: In credit cards they are charged based on the daily balance and there is need of daily balance and…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: Periodic rate = 14%/12months =1.17%
Q: amount due
A: Formula to calculate amount due is: A = P(1+rt) Where A is the accrued amount, P is the principal…
Q: A man makes a simple discount note with a face value of $2,700, a term of 120 days, and a 9%…
A: Formula: Discount amount = Face value of note x discount rate x number of days Multiplying face…
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A: In the context of the given question, we are to required compute the discount and the proceeds from…
Q: Then, prepare the journal entry assuming the payment is made within 10 days (the discount period).
A: Formula: Net sales = Sales - discount where, Discount = Sales x discount rate
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A: Note receivable refers to a negotiable instrument. It represents the claim amount due on the…
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A: Average Daily method: in this method for a billing cycle Each day Balance is Divided by the Total…
Q: find
A: Formula to calculate the installment amount: Total installment amount = Installment per payment*No…
Q: A store will give you a 5.00% discount on the cost of your purchase if you pay cash today.…
A: Calculation of the implicit borrowing rate being paid by customers: Let's assume that the cost of…
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A: calculation of chain discount are as follows
Q: Should an organization take a discount of 1.5/10 N/30 on a $9,000 invoice or simply pay the bill…
A: Discount is the reduction in the invoice amount. It is computed by multiplying the invoice amount…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: No.of days for a payment to be received and recorded = 10 days Balance = $200 Interest rate = 17%…
Q: You receive an invoice for $18,300 with terms of 5/15, n/60. If the supplier has a policy of…
A: Given, Payment made = $11,500
Q: The collection of a S600 account within the 2 percent discount period will result in a O a. debit to…
A: Accounts Receivables Accounts receivables are the amounts due from the customers of the company…
Q: A store will give you a 3.75% discount on the cost of your purchase if you pay cash today.…
A: Monthly rate is calculated below:
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: Case : As the question provides that the payment receive and record would take time of 10 days .…
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A: Computation of finance charge:
Q: The face value of a simple discount note is $17,000. The discount is 4% for 160 days. Calculate the…
A: Given information in question Simple discount note is $17,000 Discount is 4% for 160 days Purchase…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: As per previous balance method, the interest is ascertained on the outstanding balance at the end of…
Q: Which of the following terms of trade credit is the more expensive? a. A 3 percent cash discount if…
A: Calculating the effective annual interest rate for the credit terms 3/15, net 45. We have,The…
Q: What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A. A discount of 2…
A: Given, credit terms = 2/10, n/30 n/30 indicates that the payment should be made within 30 days from…
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- BUS 038 : Business Computations13 Which type of discount (trade discount or cash discount) is given as an incentive to pay the seller promptly? 14. Series discounts are a form of trade discount. (T or F) For Problems 15-19 assume that you purchase goods with a list price of $455 and a trade discount of 25%. The invoice is dated October 3 with terms of 3/15, n/45. 15. What is the net price after trade discount?BUS 038 : Business Computations10. You purchase goods on an invoice dated July 27 with terms of 3/10 EOM. Determine (a) the last day of the discount period, and (b) the last day of the credit period. 11. You purchase goods on an invoice dated February 5 of a leap year, with terms of 5/10-90X. Calculate the last day of the discount period. The discount period ends 100 days (10 + 90 = 100) after the date of the invoice. February 5 is day 36. 12. For terms of 6/10, n/30, what annual rate do you pay the supplier if you fail to pay the invoice at the end of the discount period?BUS 038 : Business Computations9. You purchase goods on an invoice dated July 5 with terms of 4/15, n/45 ROG. If you receive the goods on July 23, calculate (a) the last day of the discount period, and (b) the last day of the credit period. b. Last day of credit period:
- ACC 122 Fall 2020Comprehensive ProjectBestValue Corporation's Trial Balance at December 31, 20XX is presented below.All 20XX transactions have been recorded except for the items described on the next page.Debit CreditCash $ 109,890Accounts Receivable 28,789Inventory 25,540Debt Investments 0Land 55,674Buildings 215,850Equipment 75,120Allowance for Doubtful Accounts $ 1,027Accumulated Depreciation-Buildings 63,306Accumulated Depreciation-Equipment 16,048Accounts Payable 35,278Interest Payable 0Unearned Rent Revenue 48,900Dividends Payable 0Income Tax Payable 0Bonds Payable 0Discount on Bonds Payable 0Common Stock ($2 par) 29,200Paid in Capital in Excess of Par-Common Stock 44,580Preferred Stock ($60 par) 0Paid in Capital in Excess of Par-Preferred Stock 0Retained Earnings 107,904Treasury Stock 0Cash Dividends 0Sales Revenue 776,068Rent Revenue 0Gain on Sale of Land 0Bad Debt Expense 0Interest Expense 0Cost of Goods Sold 478,542Depreciation Expense 0Other Operating Expenses 53,274Salaries…BUS 038 : Business Computatns 6. You receive an invoice for $18,300 with terms of 5/15, n/60. If the supplier has a policy of allowing a cash discount for partial payments and you pay $11,500 within the discount period, calculate the amount of credit you will receive for this payment. Amount credited = Amount paid Complement of cash discount rate = $11,500P5-63A (Learning Objectives 2, 3, 4: Apply GAAP for revenue, receivables, collections, and uncollectibles using the percent-of-sales method) This problem takes you through the accounting for sales, receivables, and uncollectibles for Quick Mail Corp., the overnight shipper. By selling on credit, the company cannot expect to collect 100% of its accounts receivable. At July 31, 2012, and 2013, respectively, Quick Mail Corp. reported the following on its balance sheet (in millions of dollars): July 31, 2013 2012 Accounts receivable. Less: Allowance for uncollectible accounts. . $3,690 (119) $3,430 (160) $3,270 Accounts receivable, net $3,571 During the year ended July 31, 2013, Quick Mail Corp. earned service revenue and collected cash from customers. Assume uncollectible-account expense for the year was 4% of service revenue and that Quick Mail wrote off uncollectible receivables. At year-end, Quick Mail ended with the foregoing July 31, 2013, balances. • Requirements 1. Prepare…
- 10.The entry to record a sale of P1,800 with terms of 2/10, n/30 will include a a. debit to Sales Discounts for P36. b. debit to Sales Revenue for P1,764. c. credit to Accounts Receivable for P1,800 d. credit to Sales Revenue for P1,800LO 7.3Catherine’s Cookies has a beginning balance in the Accounts Payable control total account of $8,200. In the cash disbursements journal, the Accounts Payable column has total debits of $6,800 for November. The Accounts Payable credit column in the purchases journal reveals a total of $10,500 for the current month. Based on this information, what is the ending balance in the Accounts Payable account in the general ledger? EA6. LO 7.3Record the following transactions in the sales journal: Jan. 15 Invoice # 325, sold goods on credit for $2,400, to Maroon 4, account # 4501 Jan. 22 Invoice #326, sold goods on credit for $3,500 to BTS, account # 5032 Jan. 27 Invoice #327, sold goods on credit for $1,250 to Imagine Fireflies, account # 3896BUS 038 : Business Computations 14. Series discounts are a form of trade discount. (T or F)For Problems 15-19 assume that you purchase goods with a list price of $455 and a trade discount of25%. The invoice is dated October 3 with terms of 3/15, n/45.
- PB13. LO 3.5Post the following November transactions to T-accounts for Accounts Payable, Inventory, and Cash, indicating the ending balance. Assume no beginning balances in Accounts Payable and Inventory, and a beginning Cash balance of $21,220. purchased merchandise inventory on account, $9,900 paid vendors for part of inventory purchased earlier in month, $6,500 purchased merchandise inventory for cash, $4,750BUS 038 : Business Computatns10. You purchase goods on an invoice dated July 27 with terms of 3/10 EOM. Determine (a) the last day of the discount period, and (b) the last day of the credit period.BUS 038 : Business Computatns4. You buy goods on an invoice dated October 28, with terms of 2/20, n/45. What is the last day of the discount period?