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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:Bennett Supplies has received an invoice totaling
$50,000 with payment terms of 3/10, net 45. This
means the buyer can avail a 3% discount if the
invoice is paid within 10 days; otherwise, the full
amount is due in 45 days. How much does the buyer
save if the bill is paid within the discount period?
a. $0
b. $1,500
c. $2,000
d. $2,500
Expert Solution
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- Which one of the following statements is correct if you purchase an item with credit terms of 3/15, net 45? Multiple Choice One-third of your purchase is due in 15 days and the rest is due in 45 days. If you pay within 15 days, you will receive a discount of 3 percent. If you pay within 3 days, you will receive a discount of 15 percent. If you do not pay within 15 days, you will be charged Interest at a rate of 3 percent per month. If you pay 3 percent of your purchases within 15 days, you will have 45 days to pay for the remainder.arrow_forwardA buyer received an invoice for P 60,000, inclusive of 12% VAT dated October 2. If the terms are 2/10, n/45 and the buyer paid the invoice within the discount period, what amount will the seller receive?arrow_forwardA supplier grants credit terms of 1/5, net 30. What is the effective annual rate of the discount on a purchase of $5,000?arrow_forward
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