Winter Company received quotations from two entities for an item of merchandise as follows: From Company A: List price P500,000, less 20-10-10, FOB shipping point, 2/10, n /30. From Company B: List price P500,000 less 35, FOB shipping point, 2/10, n /30. Required: For each quotation, compute the invoice amount and the amount to be paid by the buyer within the discount period.
Winter Company received quotations from two entities for an item of merchandise as follows: From Company A: List price P500,000, less 20-10-10, FOB shipping point, 2/10, n /30. From Company B: List price P500,000 less 35, FOB shipping point, 2/10, n /30. Required: For each quotation, compute the invoice amount and the amount to be paid by the buyer within the discount period.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter10: Accounting For Sales And Cash Receipts
Section: Chapter Questions
Problem 2CE: Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is...
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Winter Company received quotations from two entities for an item of merchandise as follows:
From Company A: List price P500,000, less 20-10-10, FOB shipping point, 2/10, n /30.
From Company B: List price P500,000 less 35, FOB shipping point, 2/10, n /30.
Required:
For each quotation, compute the invoice amount and the amount to be paid by the buyer within the discount period.
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