Which of the following terms of trade credit is the more expensive? a. A 3 percent cash discount if paid on the 15th day with bill due on the 45th day (3/15, net 45) b. A 2 percent cash discount if paid on the 10th day with the bill due on the 30th day (2/10, net 30)

Q: In the credit terms of 3/15, n/45, the "3" represents the a. Number of days when the entire amount…

A: Credit terms:   Credit terms are the terms of payment offered by the seller to the buyer.

Q: A credit card bill for $655 was due on April 14. Purchases of $155.56 were made on April 19. The…

A: A credit card bill for $655 was due on April 14April 19 purchase=$155.56Charge on April…

Q: The collection of a $900 account after the 2 percent discount period will result in a a. debit to…

A: The cash has been received after the discount period that shows that the discount would not be…

Q: A $10,000 credit supply has the following terms: trade terms are 5/5 net 50, interest rate 8%. What…

A: If the amount is paid within 5 days of invoice then the 5% discount will be allowed on net amount…

Q: The collection of a $1,200 account after the 2 percent discount period will result in a

A: Journal entry is a primary entry that records the financial transactions initially.

Q: Hail and Sons operates for 240 days in a year. It has been offered credit terms of 4/30 net 90 days.…

A: If company provide credit than it is cost to company so company provide discount to the customers to…

Q: A credit sale of $2800 is made on July 15, terms 4/10, net/30, on which a return of $200 is granted…

A: Net Receivables = Credit sales made - Sales return = $2800 - $200 = $2600

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…

Q: What is the nominal annual percentate cost of the non-free trade credit if it pays within 120 days…

A: Nominal annual % cost of non-free trade credit = [ { Discount / ( 1 - Discount ) } x { 365 / ( Days…

Q: Find the average daily balance

A: Meaning of Average Daily Balance Average daily balance refers to a method where the credit card…

Q: McDowell Industries sells on terms of 4/10, net 40. Total sales for the year are $825,500. Thirty…

A: Discounted customers=15×30%=4.5 days

Q: American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on…

A: The annual percentage rate(APR) is the interest rate (nominal rate) determined by the credit card…

Q: 7. Using the following table containing the dates of purchases and payments to determine the average…

A: A credit card is a way of obtaining short term finance by a consumer for fulfilling their purchase…

Q: The unpaid balance at the start of a 28-day billing cycle was $981.72. A $6,000 purchase was made on…

A: Information Provided: Unpaid balance = $981.72 Purchase = $6000 Payment credited on Day 21 = $50…

Q: On a 365-day basis, what is the rate per period of using trade credit if terms are 2/10, net 30, and…

A: On making payment till 10th day there is 2% discount. If payment is made between 11th till 30th day,…

Q: Nominal cost of trade credit:   % Effective cost of trade credit

A: Nominal cost of trade credit is given by the following formula : = [(Discount % / 100 - Discount…

Q: Use the average daily method to find the finance charge on the credit card account for September…

A: Average daily balance is a method in which balance for each day is calculated. Sum of each day…

Q: Use the average daily method to find the finance charge on the credit card account for September…

A: To Find: Finance Charge

Q: h discount terms for a $500 purchase are 4/10 net 30, the number 10 refers to Multiple Choice   the…

A: Cash discount terms  4/10 net 30 means payment  has to be made within 10 days of purchase to avail…

Q: American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on…

A: When the benefits of compounding over time are taken into account, an effective annual interest rate…

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: In credit terms of 3/15, n/45, the "3" represents a. Full amount of the invoice b. Percent of the…

A: The terms of 3/15, n/45 means a discount of 3% if payment is made within 15 days whereas payment…

Q: You are provided with the following information:   Sales for the year $400 000 Discounts provided…

A: Solution 1: Computation of cash received from customers Particulars Amount Beginning accounts…

Q: Princeton's detailed age analysis of trade receivables at 31 December 2020 shows the following:…

A: Trade receivables are those receivables which the company have which has not been received by the…

Q: The payment schedule of purchases made on account is as follows: 75% during the month of purchase,…

A: Payment for credit purchases in December = 10% of October + 15% of November + 75% of December

Q: (a) What is the last day for taking the cash discount? (b) What is the amount due if the invoice is…

A: Credit term refers to a payment term mentioned in the invoice which stated the timing and payment of…

Q: The cost of not taking the discount on trade credit of 2/10, net 30 is approximately. (Use 360 days…

A: Trade credit is an agreement of commercial financing according to which a customer can buy goods or…

Q: Based on the following information, how much is the amount that would be paid on May 30? Invoice…

A: A trade discount is given at the time of purchase to the retailer or reseller by the manufacturer on…

Q: Cook Security Systems has a $37,500 line credit, which charges an annual percentag ate of prime rate…

A: Prime rate :- The prime rate is the rate of interest charged by commercial banks to their most…

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: Washington Products offers credit terms of 3/10, n/45. Which of the following statementsis…

A: Given statement is: Washington Products offers credit terms of 3/10, n/45.

Q: Yesterday, Smiley Company sold $22,500 of merchandise on credit. The invoice was sent today with the…

A: Here, Value of Sales is $22,500 The discount term is 3/10 net 40 Therefore, Discount Rate is 3% if…

Q: On a 365-day basis, what is the effective annual rate of using trade credit if terms are 2/10, net…

A: If the payment is done in 10th day, the discount is given for 2 else full payment is required if…

Q: What is the total cash discount if an invoice dated March 3

A: Purchase date = March 31 Payment date = April 20 No. of days between March 31 to April 20 = 20

Q: The net price of an item after trade discounts of 15% and 8% was RM1,955. Find: a) the list price b)…

A: List Price can be calculated as per the formula given below List Price = Gross Price - Trade…

Q: credit card bill for $657 was due on April 14. Purchases of $155.56 were made on April 19. The…

A: Balance from April 14 th to 18th = 657 April 19th to 20st = 657 + 155.56 = 812.56 April 21st to 24th…

Q: What are the key points arising from the credit controller's review in respect of each trade…

A: Trade receivables are those receivables which the company have which has not been received by the…

Q: Use the average daily method to find the finance charge on the credit card account for September…

A: Finance charge refers to the fees charged by the financial institution for providing credit card…

Q: Cost of Trade Credit What are the nominal and effective costs of trade credit under the credit…

A: Formula  for  Nominal cost of credit  = % of discount/(100- % of discount) × [365/(Full payment…

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: Merchandise costing $539 is sold for 1848 on terms 2/10, n/30. If the buyer pays within the discount…

A: Accounts receivables:  It implies to the amount that has been owed by the customers from the…

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: Given credit terms of 2/25, n/30 on a sale of $1,500, in how many days must the invoice be paid to…

A: In the given terms, n/30 indicates that the payment should be made within 30 days. Hence, option A)…

Q: In credit terms of 3/15, n/45, the "3" represents the Oa. number of days in the discount period Ob.…

A: Credit terms: Credit terms are terms between a seller and buyer. These terms state the time and…

Q: On a 365-day basis, what is the rate per period of using trade credit if terms are 2/10, net 30, and…

A: Here, Credit Terms is 2/10 net 30 Payment is made on the 20th day Days in an year is 365

Q: the effective borrowing cost of skipping the discount on day 10 is closest to:

A: Trade credit is an agreement in which a customer can purchase goods from the seller without paying…

Q: Which one of the following statements is correct if you purchase an item with credit terms of 3/15,…

A: The credit terms are the terms of sale for customers who have been extended credit by the firm. Here…

Q: A trade credit bill of $80,000 with terms of sale of 2/5, net 30 means the buyer saves if the bill…

A: Answer= $1,600        if the bill paid with in discounted period of 5 days he will entitled to 2%…