INFORMATION (4 marks) Tongaat Wholesaler's normal credit terms to Troy Stores are 60 days but the supplier is prepared to allow a rebate of 4.5% if Troy Stores pays the account within 15 days.
Q: Calculate the cost to Energy of not accepting the discount
A: We can determine the cost of not taking the discount using the formula below. Please note that we…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: Variables in the question:Balance=$700Rate(r)=17%Payment=$650Assume 365 days in a year
Q: You have a carryover balance of $968 on a credit card that has a 15.99% annual percentage rate…
A: Here,Carryover Balance is $968APR is 15.99%Payment is 8% of Ending Balace of Month
Q: alculate the APR and rEAR of non-free trade credit associated with credit terms of 3/25, net 85, and…
A: The term trade credit is a term used for short-term financing for buyers and it helps in improving…
Q: Assume the credit terms offered to your firm by your suppliers are 2/20, net 40. Calculate the…
A: Discount rate (r) = 0.02 Discount days (D) = 20 Credit term (C) = 40 Cost of trade credit = ?
Q: Kumi Ltd permits its customers to pay with a credit card or to receive a percentage discount ? for…
A: Given:
Q: Bhupat
A: The objective of this question is to calculate the total balance on the next billing date, which is…
Q: On July 30, it made a payment of $7,500.00. Vertical Adventures will restore its zero balance on…
A: The credit card balance is similar to taking out a bank loan to make purchases. It is a financial…
Q: discount. The invoice was settled by cheque five days later. Which one of the following gives the…
A: Before getting into the journal entries, it is important to understand a few terms first: When a…
Q: Additional Information: 1. Wages are paid each month of OMR 2000, which are paid in month that they…
A: Closing cash balance is calculated after considering opening cash balance, cash inflows during the…
Q: Carla Vista Garage Co. accepts the following forms of payment: Visa, MasterCard, the Carla Vista…
A: Journal entries recording is the initial step of accounting cycle process, under which atleast one…
Q: Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed…
A: Given Data:Balance after transaction = 13000Interest Rate = 7.4%Advance on 8th July = 13000Advance…
Q: Gudenas Company makes a credit card sale to a customer for $500. The credit card sale has a grace…
A: When the customer purchases goods on a card with a credit facility, it is referred to as a credit…
Q: Nottingham Financial purchases computer parts from its suppliers 2/10, net 60. However, Nottingham…
A: Effective Cost of not taking Trade Credit = (1 + Discount/(100 -discount)) ^(365/( days of credit…
Q: A store will give you a 3% discount on the cost of your purchase if you pay cash today. Otherwise,…
A: Customers who choose to defer payment for the month will be letting go of the discount that they…
Q: The credit terms offered to a customer by a business firm were 2/10, n/30, which means the…
A: For promoting earlier payments, sometimes sellers make credit policy like 2/10, n/30.
Q: Q1) Sparkle Jewels distributes fine stones. It sells on credit to retail jewelry stores and extends…
A: 1) Category Amount $ (A) Probability of collection (B) Probable amount to be collected $ (C)…
Q: When goods are sold to a customer with credit terms of 2/15, n/30, customers will receive a 2%…
A: Meaning of Terms: Note: 2/10, n/30: Here, 2 represent the discount rate if payment is made within…
Q: What do the credit terms, 2/15, n/30 mean? Multiple Choice A two percent discount can be deducted if…
A: The purchase invoice contains the various terms related to the payment to the supplier. It tells…
Q: Scotiabank approved a $280,000.00 line of credit for Buhler Industries at prime + 0.75%. It requires…
A: Given Data:Balance after Transaction = 240000.Rate of Interest = Prime rate + 0.75%
Q: (a) During the September 20 through October 19 billing period, you pay the minimum required payment…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed…
A: Variables in the question:Fixed interest rate=7.05%July 8, Advance made=$10500August 14, Advance…
Q: On September 1, The business sold merchandise for 33.000 TL (including 10% VAT) FOB Destination. The…
A: Notes payable are the asset of the firm where a borrower gives a written promise to lender to pay…
Q: On March 20, the Agricultural Bank deducted engineer Valdez a rate of 18% annual simple in a…
A: Simple Interest: The simple interest on a particular amount is calculated as the product of interest…
Q: Scotiabank approved a $230,000.00 line of credit for Buhler Industries at prime + 1%. It requires…
A: The problem involves the determination of payments made and whether these payments are for accrued…
Q: Assume that you start with a balance of $4000 on your Visa credit card. During the first month, you…
A: Finance charges are levied by credit card companies if credit card holder fails to make payment on…
Q: For the credit card account below, compute the average daily balance, the finance charge, and the…
A: Solution: Average Daily Balance Date Balance…
Q: You have a credit card that charges an interest rate of 20.55% compounded monthly. The table below…
A: The average daily balance method calculates interest charges for the period by multiplying the…
Q: A store will give a 2.5% disount on the cost of purchase if you pay cash today. The payment is due…
A: Effective annual rate (EAR) is a measure of the true annual interest rate that takes into account…
Q: westside traders normal credit terms to east-rand manufactures are 60 days but is prepared to allow…
A: Understanding the question Suppose East Rand Manufacturer has purchased goods of worth $100. So,…
Q: On June 22, The business sold merchandise for 11.000 TL (including 10% VAT) FOB Destination. The…
A: Notes: Notes can be defined as a promise made by the borrower to the lender for making the payment…
Q: a. Assuming the card holder had no new interest, determine his minimum payment due on December 1,…
A: First, we need to determine the total outstanding principal as the sum of all purchases. Since there…
Q: Breeze Corp. is planning to change its credit terms from 4/10, n/30 to 5/15, n/35. Currently, 50% of…
A: Days sales outstanding refer to average number of days that an organisation or a company takes to…
Q: Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed…
A: DatePayment (+) or Advances (-)RateJuly 8th-$10,750.007.45%July 30th$5,000.007.45%Aug…
Q: On April 25, The business sold merchandise for 55.000 TL (including 10% VAT) FOB Destination. The…
A: When goods are sold out and vat is charged , then vat is the tax payable to the government and not…
Q: Question: Swathmore Clothing Corporation grants its customers 30 days' credit. The company uses the…
A: We have the receivables data of Swathmore Clothing Corporation During the year, a monthly bad debt…
Q: PLEASE SHOW ALL WORK For terms of 8/10, n/60 determine the annual rate you, in effect, pay the…
A: Credit terms = 8/10 , n/60 means if payment is made within 10 days then supplier will offer 8%…
Q: None
A: Monthly finance charge $4.60 THANK YOU
Q: mobile Co issued a $58,904 60-day discounted note to Guaranty Bank the discount rate is 12% at…
A: Cash proceeds from issue of discount note = Amount of the note - discount = $58,904 -…
Q: Vertical Adventures has an open line of credit with a zero balance at its credit union using a fixed…
A: Given Data:Balance after Transaction = $11250Interest Rate = 7.25%Advances on 14th August =…
Q: On October 13, The business sold merchandise for 198.000 TL (including 10% VAT) FOB Destination. The…
A: The selling of assets is recorded by debiting to notes receivable and crediting the machinery…
Q: roblem Solving. A promissory note which is dated January 1, 20A was received from a client for…
A: The promissory note carry the interest that is payable on the maturity of the note. that note can be…
Q: A store will give you a 1.00% discount on the cost of your purchase if you pay cash today.…
A: Given information :Discount rate = 1%Time period for payment due = 1 month Purchase price (Assumed)…
Q: A merchant sells a product on credit for S/ 50,000 and offers to pay it to a client in three bills…
A: 1. The face value of the bills. Particulars Bill 1 Bill 2 Bill 3 Credit sales amount…
Step by step
Solved in 2 steps
- Which is correct ?Company X sells on a 2/15, net 60, basis. Company Y buys goods with an invoice of $4,500. a. How much can company Y deduct from the bill if it pays on day 15? (Do not round intermediate calculations.) b. How many extra days of credit can company Y receive if it passes up the cash discount? c. What is the effective annual rate of interest if Y pays on the due date rather than day 15? (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)Loans Scotiabank approved a $230.000.00 line of credit for Buhler Industries at prime + 1%. It requires only the repayment of accrued interest on the 24th of each month which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 6 for $160,000.00 and made a payment of $130,000.00 on January 16 The prime rate was 5.25% initially and increased to 6.5% on January 7. Complete the repayment schedule below by filling in the payment and principal amounts. Payment Date Balance Annual before Interest Transaction Rate Number of Days Interest Accrued Charged Interest (+) or Principal Balance after Advance Amount Transaction (-) Dec 6 $160,000.00 Dec 24 $160.000,00 $160,000.00 Jan 7 Jan 16 $160,000.00 $30,000.00 Jan 24 6.25% 18/365 7.5% 8/365 6.25% 14/365 $383.56 7.5% 9/365 $295.89 $679.45 $49.32 $728.77 $493.15 $493.15 $383.56 $160,000.00 $160,000.00 $30,000.00 $30,000.00 Notes You con can partial credit on this problem
- 4. The total current amount due to a purchase made by using credit card is P54,245.50, Based on the agreement the minimum required payment is 8.5% of the total amount due, If the client pays only the minimum requlred payment, a charge 2.5% of the remaining balance will be carried on to the next bill. If there are no purchases made for the next two manths and a charge of 2.5% is added every billing period, what is the required monthly bill for the next months? TIME/MONTH TOTAL AMOUNT DUE FOR MINIMUM REQUIRED THE MONTH PAYMENT FOR THE MONTHFor the credit card account below, compute the average daily balance, the finance charge, and the account balance for the next billing. Assume the account is billed on the same date each month and that the annual interest rate is 18%. This credit card company calculates the finance charge on the average daily balance, but they consider each month of a year instead of using the number of days in the month. 12 Previous Balance: $1045 March 15 Billing Date March 23 Flowers $106 March 30 Payment $81 April 1 Groceries $86 April 8 Returns $50 April 11 Concert Tickets $138 Average Daily Balance: Finance Charge: Account Balance for the Next Billing:A store will give you a 5.00% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month?
- A company has issued commercial paper at 2.5% discount for 45 days. What is the price of the commercial paper and how much will be the effective rate of interest on this paper. Should this company issue this paper if the prime rate is 3.5%.The credit terms offered to a customer by a business firm are 2/10, n/30, which means that the customer must pay the bill within 10 days. the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date. the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date. two sales returns can be made within 10 days of the invoice date and no returns thereafter.Loans Scotiabank approved a $230,000.00 line of credit for Buhler Industries at prime + 1%. It requires only the repayment of accrued interest on the 24th of each month, which is automatically deducted from the checking account of Buhler Industries. Buhler took out an advance on December 6 for $160,000.00 and made a payment of $130,000.00 on January 16. The prime rate was 5.25% initially and increased to 6.5% on January 7. Complete the repayment schedule below by filling in the payment and principal amounts. Date Balance Annual before Interest Transaction Rate Number Interest of Days Charged Accrued Interest Payment (+) or Advance (-) Principal Balance after Amount Transaction Dec 6 Dec 24 $160,000.00 $160,000.00 6.25% 18/365 $493.15 $493.15 $160,000.00 Jan 7 6.25% $160,000.00 14/365 $383.56 $383.56 $160,000.00 Jan 16 $160,000.00 7.5% 9/365 $295.89 $679.45 $30,000.00 Jan 24 $30,000.00 7.5% 8/365 $49.32 $728.77 $30,000.00 You can earn partial credit on this problem.
- Best Credit offer a credit card with an annual percentage rate of 14.98%, a 30 day statement period and a further 25 days interest free. Calculate the amount of interest charged on an outstanding balance of $625, given that the first purchase was made on the first day of the 30-day period and the balance was paid on day 69. Assume that no other purchases were made. (No dollar sign required) Answer:A machine shop has a credit card that offers rebates on purchases. At the end of May, the company had a credit card bill of $19,474.38. If the company must make a minimum payment that is the greater of $500 or 4.5% of the credit card bill, what is the minimum monthly payment for May? (Round your answer to the nearest cent.) $?A machine shop has a credit card that offers rebates on purchases. At the end of May, the company had a credit card bill of $19,462.41. The company must make a minimum payment that is the greater of $500 or 4.5% of the credit card bill. (a) What is 4.5% of the credit card bill? (Round your answer to the nearest cent.) (b) What is the minimum monthly payment for May? (Round your answer to the nearest cent.)
