Answered: The XYZ Company sold goods worth…

The XYZ Company sold goods worth $10,000 on credit. The terms of the sale are 2/10, net 30. Calculate the amount the customer needs to pay if they take advantage of the cash discount.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 4Q: If a retailer made a purchase in the amount of $350 with credit terms of 2/15, n/60. What would the...

See similar textbooks

Related questions

Q: Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar…

A: Income Statement - An income Statement is a financial statement that includes revenue earned and…

Q: If Conservative sells the warehouse in 2025 for $242,000, what entry would be made for the sale?…

A: Impairment losses are important because they ensure that the financial statements accurately reflect…

Q: Kingbird Corporation incurred the following costs during 2022. Direct materials used in product…

A: The manufacturing cost includes the cost that is incurred to manufacture the product. It means the…

Q: der the following transactions. 1. Receive cash from customers, $16,600. 2. Pay cash for employee…

A: T-account :— It is the general ledger accounts which are prepared to post transaction after passing…

Q: Steven Garcia and Associates, a CPA firm, uses job order costing to capture the costs of its audit…

A: Job order costing is one of the costing methods used by those entities where multiple products are…

Q: Required information [The following information applies to the questions displayed below.] Delph…

A: The pre-determined overhead rate is calculated as estimated overhead costs divided by estimated…

Q: Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance…

A: Income Statement- An income statement is one of the three significant financial statements used…

Q: Coronado Inc. is a retailer operating in British Columbia. Coronado uses the perpetual inventory…

A: The inventory is recorded under the perpetual system or periodic system. The inventory valuation may…

Q: COST OF RENTING

A: In rent or buy home decision we calculate the cost benefit analysis of both and…

Q: lease no written by hand Exercise 8-15 The board of directors of Coronado Corporation is…

A: Lets understand the basics. An income statement is a financial report that indicates the revenue and…

Q: ammy's Cosmetics uses a normal costing system and has the following balances at the end of its first…

A: The overhead is applied to the production on the basis of pre-determined overhead rate. The overhead…

Q: Awla Ltd. sells two products as follows: Product A Product B Units sold 2,625 3,500 Selling price…

A: Break-even is the point at which the entity is in a situation of no profit and no loss. It is the…

Q: What is the payback period for the following set of cash flows? (Do not round intermediate…

A: A payback period is the minimum period in which the amount associated with the initial investment is…

Q: Challenger Factory produces two similar products: regular widgets and deluxe widgets. The total…

A: Predetermined overhead rate is calculated on the basis of estimated cost and estimated hours,…

Q: Exercise 1-7 Part 1 Volkswagen AG and Daimler AG, both based in Germany, are two of the largest…

A: Index is calculated by using arithmetic average of both sales and assets

Q: On January 2, 2024, Trusty Delivery Service purchased a truck at a cost of $67,000. Before placing…

A: Depreciation Expense - Depreciation Expenses incurred on the fixed assets of the company. It is…

Q: Tim, a single taxpayer, operates a business as a single-member LLC. In 2022, his LLC reports…

A: An excess business loss is the amount by which the total deductions attributable to all of your…

Q: Vaughn Paper Products purchased 11,500 acres of forested timberland in March 2020. The company paid…

A: Depletion It refers to an accrual method of accounting used in the calculation of expense of…

Q: mms are omitted from each of the following three lists of cost of goods sold data f items,…

A: Finished goods refers to the total units of the products which were completed by the manufacturing…

Q: ACCT 203 produces and sells lighting fixtures. An entry light has a total cost of $180 per unit, of…

A: A product cost is a sum of certain costs that are incurred directly while making the product…

Q: The Ste. Marie Division of Pacific Media Corporation just started operations. It purchased…

A: Residual income is the amount left after paying of cost of capital out of the operating profit.…

Q: (Corporate income tax) Last year Sanderson, Inc. had sales of $3.0 million. The firm's cost of goods…

A: The average tax rate indicates the effective tax rate. The entity earns income and pays taxes, The…

Q: Sheridan Company purchased a machine on January 1, 2019, for $837000. At the date of acquisition,…

A: The question is related to the Chnage in Accounting Estimates. Chnage in Accounting Estimates is…

Q: Oriole Corporation sells item A as part of its product line. Information as to balances on hand,…

A: Ending inventory is the amount of inventory in hand at the end of the period. It is the inventory…

Q: Current Attempt in Progress A tabular analysis of the transactions made during August 2022 by…

A: Stockholders Equity is calculated by subtracting total liabilities from total assets or…

Q: Maribeth Paz owns and operates an interior design studio called Aesthetic Designs. The following…

A: Financial Statements - Financial Statements includes Income Statement, Statement of Owner's Equity…

Q: Current Attempt in Progress A company developed the following per-unit standards for its product: 5…

A: Direct material price variance = actual quantity×(Standard price - actual price)

Q: Question 3 On December 31, 2022, Potter Corporation issued €2,000,000, 6%, 5-year bonds for…

A: The discount on the bond issued bond is amortized and added to the carrying value of the bond…

Q: Calculate the cash flow in each of the following cases: a. Cash paid for rent: Rent expense Prepaid…

A: Statement of cash flows: The statement of cash flows records all the sources and use of the cash in…

Q: At May 1, 2020, Bonita Company had beginning inventory consisting of 170 units with a unit cost of…

A: Lets understand the basics. There are various methods are followed for calculating inventory balance…

Q: TipTop Flight School offers flying lessons at a small municipal airport. The school's owner and…

A: The revenue and spending variance is the difference between the actual and flexible budget data. The…

Q: Discuss the conceptual framework for financial reporting and its importance in guiding accounting…

A: Financial reporting refers to the process of communicating an organization's financial information…

Q: From an IT audit perspective, Business Continuity Plan (BCP) completeness reflects the current state…

A: Evaluating a Business Continuity Plan's (BCP) completeness is a crucial component of an IT audit.…

Q: Keller Cosmetics maintains an operating profit margin of 5% and asset turnover ratio of 3. a. What…

A: a. The Return on Assets (ROA) is calculated by multiplying the operating profit margin with the…

Q: On April 22, 2023, Carla Vista Enterprises purchased equipment for $136,500. The company expects to…

A: Depreciation Expenses - Depreciation Expense is an expense incurred on the fixed assets of the…

Q: i don't understand the cash budget

A: Budget is an estimation of future activities in adavnce so that a business entity or…

Q: Mauro Products distributes a single product, a woven basket whose selling price is $25 per unit and…

A: The break-even sales are calculated as fixed costs divided by contribution margin ratio. The…

Q: a has cash of $5,000, inventory of $100,000, and accounts receivable of $45,000. Current…

A: Quick ratio = (Current assets - Inventory ) / Current liabilities Current assets = cash + Inventory…

Q: Cascade Company was started on January 1, Year 1, when it acquired $152,000 cash from the owners.…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Number of Employees No Shows Pald (Non- Cancellations Division Registrations Attended refundable)…

A: Registration Payment - It is the total receipt of money collected from attendees. Registration…

Q: Entity A, a VAT-registered business in the Philippines, had total sales of $3,000,000 and total…

A: The value contributed at each stage of the production of goods or services is subject to a…

Q: Systems Manufactures audio systems for cars. Two models are produced: The Standard model has a…

A: Activity variance can be described as the difference between what is planned and what has actually…

Q: The income from leasehold improvement was reported by the lessor using the spread-out method.…

A: There are multiple question and both these questions are an independent question which are not the…

Q: Capital Budgeting Drill #5 A certain company is considering purchasing a repair machine. The cost of…

A: The internal rate of return is the discounting rate at the net present value of a project or…

Q: Coburn (beginning capital $60.000) and Webb (beginning capital $86.000) are partners. During 2022,…

A: No interest on capital is allowed to partners if no interest is mentioned in the partnership deed.…

Q: Knowledge Check Accounting data of Lad Mowing are presented here. Net sales Gross profit 2025…

A: The gross profit is calculated as difference between sales and cost of goods sold. The gross profit…

Q: Required: Calculate the total cash amount Stony will report on its balance sheet.

A: Cash and cash equivalents: Cash is the category that includes currency, coins, and deposits in bank…

Q: Charger Inc. had the following items that require adjusting entries at the end of the year. a.…

A: Lets understand the basics. Adjusting journal entry is required to pass to record correct amount of…

Q: Baxter Corporation made the following budget cost estimates for the upcoming month: Direct Labor =…

A: Variable Cost - Variable cost is the cost which is per unit fixed and vary with the level of…

Q: at december 31, 2022 and 2023 sunland corp had 102000 common shares and 10200 $4 no par value…

A: Basic earning per share = Earning available to equity shareholder / Weighted average number of…

Question

The XYZ Company sold goods worth $10,000 on credit. The terms of the sale are 2/10, net 30. Calculate the amount the customer needs to pay if they take advantage of the cash discount.

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Itroduction:

VIEW

Step 2: Explanation:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If a retailer made a purchase in the amount of $350 with credit terms of 2/15, n/60. What would the retailer pay in cash if they received the discount?
A car dealership sells a car to a customer for $35,000. The customer makes a 10% down payment, and the dealership finances the remaining 90% in-house. How much will the car dealership record in Accounts Receivable for this customer? A. $31,500 B. $19,250 C. $8,750 D. $7,000
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.
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
American Signs allows customers to pay with their Jones credit card and cash. Jones charges American Signs a 3.5% service fee for each credit sale using its card. Credit sales for the month of June total $328,430, where 40% of those sales were made using the Jones credit card. Based on this information, what will be the total in Credit Card Expense at the end of June?
When 25 of merchandise is returned for a credit on account, what is the amount of the credit to Accounts Receivable, assuming a 6% sales tax rate? (a) 1.50 (b) 25.00 (c) 26.50 (d) 31.00
I purchased goods on account for 8,200, terms 1/10, n/30. I returned $1,700 of the goods and received full credit. If I pay the invoice within the discount period, what is the amount of cash required for the payment? Round the answer to the nearest dollar.
ABC Corp sold goods with a list price of P100,000 on terms of 10%, 3/10, 1/15 n/30. Based on experience, ABC's customers take the higher cash discount. Under the gross method, how much receivable was recognized on the date of sale? 86,425 87,300 90,000 90,824
Cormack purchased merchandise with a list price of P60,000 from the Murray. Murray offers its customers credit terms of 2/10, n/30. What amount should Cormack pay if the cash discount is taken?
A store offers its salespeople a table with coefficients to be applied to the cash sale value of its products if the customer needs to finance the purchase of the products. Assuming the store charges a compound interest rate of 6% p.m. in sales made on credit, calculate the value of these coefficients in the following situations:a) 12 monthly installments, the first being paid after thirty days; (0.119277)b) 24 monthly installments, the first of which is paid upon purchase; (0.075169) c) 36 monthly installments, the first being paid after six months. (0.091528)
If the total Accounts Receivable of HAPPY ENTERPRISES is 560,000 and gives its customers a 5% discount if their accounts are settled within 10 days, the discount period. What amount of cash would be receive by the enterprise, supposing that it is a VAT paying business and that its customers were able to pay within the discount period.