) ABC Pty Ltd. sells $2,000 of goods to PQR Pty Ltd. on account with the terms of the invoice 2/20, n/30. The possible discount allowed in this situation will be: • $40 • $50 • $45 • $55
Q: ALS & Co. sold goods with an invoice price of P5,700,000 on January 1, 2021. Trade discounts were…
A: Solution 1: Total trade discount = (P5,700,000*25%) + (P5,700,000*75%*5%) = P1,425,000 + P213,750 =…
Q: On November 1, 2021, FDN Trading sold merchandise to ABC Trading worth P43,000 with credit term of…
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A: The correct answer is $4,900.
Q: Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17,…
A: ANSWER (3 - a) DATE PARTICULARS DEBIT ($) CREDIT ($) 17 NOV , 2021 ACCOUNTS RECEIVABLE…
Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…
A: Formula: Discount amount = Invoice amount x Discount rate
Q: Honesty purchased an item with a catalog price of P10,000. The invoice dated March 1 indicates a…
A: Net purchases = Purchases worth - Purchase discount = P10,000 - P10,000 x 20% = P8,000
Q: On June 1, 2020, Eleno Buray Jr. Forest Products sold merchandise with a P120,000 list price. Trade…
A: Trade discount is offered to encourage the buyer to purchase the products in bulk size. This…
Q: On May 9, 2021. Papa Corporation sold merchandise with a list price of P 150,000 to Mama Company on…
A: Purchases are always recorded net of trade discounts. When more than one trade discount is applied…
Q: The company purchased appliances for sale worth P4,000,000, VAT exclusive on account under the…
A: Net purchases = Purchases worth - Purchase discount = P4,000,000 - P4,000,000 x 10% = P3,600,000
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A: Special Journal There is much difference in the General journal entry and the special journal entry.…
Q: On January 13, 20xx, Karl Co. sold on account goods with selling price of P300,000 with terms of…
A: FOB destination, freight prepaid indicates that the seller is responsible for the goods until they…
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A: Discount received = Net purchase x discount rate Net purchase = cost of goods purchased - goods…
Q: On May 15, 2010, the R. Luzon Book Distributors acquired for resale books on account with a list…
A: Credit terms 2/10, n/30 means customer will get a discount of 2% if payment is being made within 10…
Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…
A: Formula: Discount amount = Invoice amount x Discount rate.
Q: Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17,…
A: Gross method is an Method where Sales are recorded in Full value including the discount amount which…
Q: Silver Co. sold merchandise to Bronze Co. on account, P23,000, terms 2/15, ne 45. The cost of the…
A: The amount of a company's gross sales minus returns, allowances, and discounts is known as net…
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A: Gross purchase = Quantity purchased x Gross price per quantity = 400 x RO 70 each = RO 28000
Q: Modern Enterprises Co purchases $200,000 of merchandise with credit terms of 3/10, n60 on March,…
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A: Introduction:- Backyard World buys plastic pools from a supplier Total Invoice amount of $13,500…
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A: FOB means seller prepays the freight and bills it to the buyer. In this case payment is made in the…
Q: On January 1, 2021, Paul Corp sold merchandise with a list price of P100,000 to James on account.…
A: Trade discount is the discount which is available to all customers whether made cash payment or not.…
Q: The company purchased appliances for sale worth P4,000,000, VAT exclusive on account under the…
A: Net purchases = Purchases worth - Purchase return = P4,000,000 - P5,000 = P3,995,000
Q: Belpre, Inc. owes $90,000 to William's Drones Co. for inventory acquired with terms of 3/15, n/30.…
A: Formula used: Discount amount = Invoice amount x Discount rate.
Q: After paying P846,740 and being allowed a discount of P17,260 for prompt settlement, P312,560 was…
A: Calculation of amount paid towards current year purchases - Particulars Amount Cash paid…
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A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Belpre, Inc. owes $90,000 to William's Drones Co. for inventory acquired with terms of 3/15, n/30.…
A: Given: - Purchase price= $90,000 Purchase Discount= 3%
Q: J.C. Penney of Boston sold office equipment for $12,000 to Lee's of San Diego. Terms of the sale are…
A: 3/10, n/30 refers that 3% discount is provided if payment is made with in 10 days and final payment…
Q: . Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and…
A: Trade discounts Trade discounts are discounts given on the invoice value. Trade discounts are given…
Q: Marc Company sold merchandise to Jacobs Company on July 7, 2020 at a list price of P150,000, trade…
A: Note: 2/EOM, n/60: Here, 2 represents the discount rate if payment is made within two days after the…
Q: Sally received an invoice dated on 15 February 2020 worth RM4,050 of goods that included a prepaid…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…
A: Invoice Price = 22,000 Credit Terms = 1/10,n/15 1% discount will be Provided if payment has made…
Q: ABC Co. purchased merchandise with a list price of P90,000, subject to trade discounts of 20% and…
A: Solution: List price of merchandise = P90,000
Q: Vanessa company purchased P15,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB…
A: Credit terms 3/10, n/45 means that 3% discount will be allowed if amount will be paid on 10 days,…
Q: Cormack purchased merchandise with a list price of P60,000 from the Murray. Murray offers its…
A: Discount amount = Lis price x discount rate = P60,000 x 2% = P1,200
Q: gkook Co. purchased goods with invoice price of P3,000 on account on December 27, 2021. The related…
A: Under FOB shipping terms of the shipment, Freight is to be borne by the buyer of goods. Therefore it…
Q: Required: 1. Prepare the journal entries to record the sale on November 17 (ignore cost of goods)…
A: Journal entry for trade discount is not recorded in the books of accounts
Q: On June 1, 2019 Ela Company sold merchandise with a list price of P1,000,000 to XYZ Company. Ela…
A: Solution: Net price = List price - Trade discount = P1,000,000 *(1-0.20) (1-0.10) = P720,000
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: A. R. Black, Ltd. has received an invoice for $500 subject to trade discounts 10%, 20%. A cash…
A: Cash Discount: A cash discount is a reduction in the amount of an invoice that the seller allows the…
Q: Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17,…
A:
Q: Castro Industries purchased $21,600 of merchandise on February 1, 2020, subject to a trade discount…
A: The periodic system does not maintain the record for cost of goods sold with every transaction in…
Q: ABC Co. purchased goods with invoice price of P1,000 on account on Dec. 27, 2019. The related…
A: Introduction: Journals: Recording of a business transactions in a chronological order. Each and…
Q: liwat Company purchases goods for OMR 18,000 from the supplier and makes payment along with VAT, The…
A: VAT is a value added tax lived on goods and services for value added at every stage of production or…
Q: On June 1, 2020, Eleno Buray Jr. Forest Products sold merchandise with a P120,000 list price. Trade…
A: The sales reports of the business are more likely to reveal the most precious source of marketing…
Q: Bramble Corporation sells merchandise on account for $4800 to Kingbird Corporation with credit terms…
A: Discount terms 2/10 net 30 indicates that A discount of 2% on net sales That is total sales less…
Q: Harmony trading purchased an item with a catalogue price of 17,000. The invoice dated Nov 1 2021…
A: Solution: Net purchase price after trade discount = 17,000*80% = 13,600
2) ABC Pty Ltd. sells $2,000 of goods to PQR Pty Ltd. on account with the terms of the invoice 2/20, n/30. The possible discount allowed in this situation will be:
• $40
• $50
• $45
• $55
Step by step
Solved in 2 steps with 2 images
- Question :) The amount of discount to be recorded if the invoice is paid within the discount period on a purchase of goods having a list price of $1,600, subject to a trade discount of 25 percent with terms 2/10, n/30, is a $24. b.$30. c.$29.40. d.$21. e.$450.2.a) Twinky Trading sells an item for RM 3500 less 20% and 15%. Find the net price. 2.b) A retailer received an invoice of of RM 15000 dated 16 February 2019 was offered 6% trade discount and cash discount terms of 5/10, n/30. Find the net payment if the invoice was paid on 24 February 2019.An item retailing for P10,000, subject to a trade discount of 25%, is paid for within the discount period on terms 2/10, n/30. What is the amount of payment? a. P7,350 b. P10,000 c. P7,400 d. P7,500
- 18. Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold account to a customer for P15,000. The seller paid transportation costs ot P1,000 and issued a credit memorandum for P5,000 prior to payment. What i the amount of the cash discount allowable? a. P160 b. P150 c. P140 d. P100Q5. If merchandise is sold on account to a customer for $1,000, terms FOB shipping point, 1/10, n/30, and the seller prepays $50 in freight, the amount of the discount for early payment would be: A. $0 B. $5.00 C. $10.00 D. $10.50A purchase invoice shows 10 items priced at $120 less trade discount 20%. A cash discount of 2½% is allowed if settlement is made within the allowed credit period. How much will be paid if the cash discount applies? A $1,170 B $1,200 C $936 D $960
- 9. The entry to record the receipt of payment within the discount period on a sale of P10,000 with terms of 3/15, n/60 will include a a. debit to Sales Discounts for $300 b. debit to Cash for P9,700. Credit to Sales Revenue for P9700 c. credit to Accounts Receivable for P9,700. d. credit to Sales Revenue for P10,000.2. A credit sale of P750 is made on June 13, term 2/10, net/30. A return of P50 is granted on June 16. The amount received as payment in full on June 23 is: a. P700 b. P650 c. P686 d. P685A manufacturer offers a 25/20 chain discount if the invoice subtotal is above $1,000. If the list price is $45 per item, what is the total price of the first invoice that activates the chain discount? B. $594.00 A. $569.25 D. $621.00 C. $648.00 03-2021 Acellus Corporation. All Rights Reserved.
- The amount of discount to be recorded if the invoice is paid within the discount period on a purchase of goods having a list price of $1,600, subject to a trade discount of 25 percent with terms 2/10, n/30, is a.$24. b.$30. c.$29.40. d.$21. e.$450.Problem: On December 31, Mr. Adrian sold equipment amounting to P640,000 with a trade discount of 6%, 1%, and term of sales of 2/45, n/60. Mr. Adrian pay the shipper of the shipping costs up to the buyer's warehouse. 1. How much is the invoice price? 2. When is the due date to avail the 2% discount? 3. What is the term of shipment? Choose if: FOB Shipping Point - Freight Collect, FOB Shipping Point - Freight Prepaid, FOB Destination - Freight Prepaid, FOB Destination - Freight CollectBUS 038 : Business Computatns5. You buy goods at a list price of $820. If you receive a trade discount of 25% and terms are “2/15, n/30,” what amount must you pay if you pay within the discount period?
