You buy goods with a list price of $800. You return goods that are defective, having a list price of $50. You are entitled to a trade discount of 20%. The seller paid $20 in freight on your behalf and added the amount to the invoice. You are offered a 4% cash discount if you pay the invoice within 15 days. What is the net amount you should pay the supplier if you make payment within the discount period?

Q: A retailer received an invoice for the purchase of twenty rackets at RM140 each. He was given trade…

A: Retailers and wholesalers want to know the one single discount rate that equates to a series of…

Q: An item retailing for P10,000, subject to a trade discount of 25%, is paid for within the discount…

A: Here the terms 2/10,n/30 means 2% cash  discount will be provided if payment has made with in 10…

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

A: Excel Spreadsheet:

Q: A small retailer buys goods from a vendor with an invoice amount of $9,300. The terms of the sale…

A: The term indicates that if the buyer paid his dues within stipulated time then he is eligible for…

Q: You place an order for 1,500 units of Good X at a unit price of $52. The supplier offers terms of…

A: I must pay inside 40 days beforehand the amount is overdue.                Hence, the number of…

Q: What is the average accounts payable for APP?

A: Accounting:   Accounting is the art of recording, classifying and summarizing in a significant…

Q: Use the trade discount system shown in the table to calculate the cost of 500 lbs of product if the…

A: Trade discount: The discount that is provided by the manufacturer or wholesaler to a wholesaler or…

Q: Suppose a certain car manufa "selling models offers a $8,000 extra dealer incentive for eaci these…

A: AMOUNT OF THE TRADE DISCOUNT , INCLUDING THE INCENTIVE : PARTICULATR AMOUNT AMOUNT PRICE 26500…

Q: 1. A watch store owner decided to offer 20% discount for a particular brand of watch that sells at…

A: Gross profit is the profit earned by the company from their operating activities. It can be…

Q: A merchant has an annual demand for a product of 500 items. He buys from a supplier at a cost of $5…

A: Buying cost = Annual Demand x Buying cost per unit Ordering cost = Ordering cost per order x (Annual…

Q: 10. SM Supermarket purchases P4,562,500 in goods over a 1-year period from its sole supplier. The…

A: Given information: Purchases = P4,562,500 Credit terms = 2/15, net 50 days Number of days in a year…

Q: You place an order for 250 units of inventory at a price of $130 per unit. The supplier offers terms…

A: Solution- (A) Days until Overdue=30 days Working notes- Offers term of 1/10, net 30, if we pay…

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: This problem is based on a sample problem from a professional accounting exam: certain retailer…

A: Note : As per the guidelines, only first three parts will be answered. Kindly post the remaining…

Q: You buy goods at a list price of $820. If you receive a trade discount of 25% and terms are “2/15,…

A: Term discount indicates that if the due amount is paid within the time specified in the term then…

Q: A chain of appliance stores, APP Corporation, purchases inventory with a net price of $700,000 each…

A: Accounts payable are those supplier accounts from whom business has made credit purchases but amount…

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

A: Invoice price is the starting price which is charged by the manufacturer from the dealer. Invoice…

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: Jasper Company is a wholesaler that buys merchandise in large quantities. Its supplier’s catalog…

A: Particulars Amount ($) The list price per unit $500 Less: Discount ($500 x 30%) 150 Net…

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

A: Workings:

Q: GJ Office Supplies offers the following discounts: Trade discounts of 10% at list price and another…

A: Trade Discount=List price×Trade Discount=P 62,000×10%=P 6,200

Q: Backyard World buys plastic pools from a supplier with an invoice amount of $13,500. The terms of…

A: Introduction:- Backyard World buys plastic pools from a supplier Total Invoice amount of $13,500…

Q: 1. Amo Co. sold goods with a list price of $60,000 on Dec. 14. Because the customer is new to the…

A: Gross Price Method – Under gross price method Accounts Receivables are recorded at the gross value…

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: A clothing merchant purchases a shipment of clothes for $35,000.00 with discounts of 11.00% and…

A: Cost means the amount incurred on the purchase of goods . Selling price means the amount for which…

Q: esaki Express, a national package delivery service, charges a base price for overnight delivery of…

A: Here the accounting concept of costing will have to be considered. Shipping charges will include…

Q: A household appliance dealer buys refrigerators from a manufacturer and resells them to its…

A: Introduction: Cash discount: When the purchaser paid the due amount with in due period then eligible…

Q: Import Exclusives Ltd received an invoice from Dansk Specialties of Copenhagen with terms 5/20…

A:

Q: You place and order for 100 units of inventory at a unit price of  P 50.00. The supplier offers…

A: Trade discount is the discount one gets when purchasing large units of goods. So, discount is given…

Q: You purchase goods with a net price of $240. The invoice is dated October 7 with terms of 3/20,…

A: (a) Cash discount = Net price * Cash discount percentage Cash discount = $240 * 0.03 Cash discount =…

Q: 4. Ms. Raheema purchases goods with a list price of RO 30,000. The supplier offers a 10 % trade…

A: Trade discount =List price of goods × Trade discount rate=RO 30,000 × 10%=RO 3,000   A)  Amount paid…

Q: How much revenue should the vendor recognize immediately at the time of your original purchase

A: Purchase price = $3,000 Voucher value = $ 500 Probability of redemption (estimate) is 90%

Q: Bob's Product Company takes 20 days to convert its raw materials to finished goods, 15 days to sell…

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

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: Garden Co. uses the installment sales method. Garden Co. sells a good costing ₱10,000 for an…

A: Gross profit is the benefit procured by the organization from working exercises. Backhanded costs…

Q: Buttons and Bows received a shipment with a list price of $2,600. The store received a trade…

A: Trade discount: A trade discount is offered on the list price of goods. It is not shown in the books…

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: Backyard World buys plastic pools from a supplier with an invoice amount of $15,500. The terms of…

A: Total invoice payment made =  partial payment made / (1 - discount rate) = $8,300 / (1 - 0.05) =…

Q: A supplier offers the following discounts: Trade discounts of 20% at list price and another cash of…

A: The amount paid after discount is calculated as difference between total invoice price and discount…

Q: Ivanhoe Choice sells natural supplements to customers with an unconditional sales return if they are…

A: Estimated sales returns = $3000*10% = $300 Estimated cost of goods returned = $1500*10% = $150

Q: A firm bought some material with a purchase price of $1,000 and credit terms of 1/10 net 30.  The…

A: 1/10 net 30 means the trade credit offered to a customer for the sales of goods and implies if the…

Q: Rangling Company, buys goods from A.J. Stop Company that gives sales terms of 2.5/10, net 30 days.…

A: Please see the next step for the solution

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

A:

Q: 1.On June 1, P8,000 of goods are sold with credit terms of 1/10, n/30. On June 3 the customer…

A: When goods are sold on discount with credit terms of 1/10, n/30, the discount allowed will be 1% of…

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…