True or False2/10, n/45 is credit term that allow for a 2% discount within 10 days of thepurchase and no discount at all within 45 days of the date of the purchase *TrueFalse5/10, n/30 is a credit termn that allow for 5% discount within the period of 10 daysTrueFalseThis is a required questionFOB shipping point is a shipping term that would typically means that the buyerhas to pay the freight charges

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2/10, n/45 is credit term that allow for a 2% discount within 10 days of the purchase and no discount at all within 45 days of the date of the purchase True False 5/10, n/30 is a credit term that allow for 5% discount within the period of 10 days True False This is a required question

2/10, n/45 is credit term that allow for a 2% discount within 10 days of the purchase and no discount at all within 45 days of the date of the purchase True False 5/10, n/30 is a credit term that allow for 5% discount within the period of 10 days True False This is a required question

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

True or False
2/10, n/45 is credit term that allow for a 2% discount within 10 days of the
purchase and no discount at all within 45 days of the date of the purchase *
True
False
5/10, n/30 is a credit termn that allow for 5% discount within the period of 10 days
True
False
This is a required question
FOB shipping point is a shipping term that would typically means that the buyer
has to pay the freight charges

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Exercise 8-11 (Algo) Trade and purchase discounts; the gross method and the net method compared [LO8-3] [The following information applies to the questions displayed below.] Tracy Company, a manufacturer of air conditioners, sold 170 units to Thomas Company on November 17, 2021. The units have a list price of $600 each, but Thomas was given a 20% trade discount. The terms of the sale were 3/10, n/30. Thomas uses a perpetual inventory system. Exercise 8-11 (Algo) Part 3 3. Prepare the journal entries to record the purchase by Thomas on November 17 and payment on November 26, 2021 and December 15, 2021 using the net method of accounting for purchase discounts. X Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 3A Reg 3B Prepare the journal entry for the payment, assuming instead that it was made on December 15, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Debit Credit…
what is the Credit for partial payment knowing that information?
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