When customers purchase goods on account, Spitz Manufacturing offers them a 2% reduction in the amount owed if they pay within 10 days. This is an example of a:   Multiple Choice   Sales return.   Sales discount.   Sales allowance.   Bad debt.

Assume the credit terms offered to your firm by your suppliers are 4​/15​, net 30. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 30

McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $1,912,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 66 days after their purchases. Assume 365 days in year for your calculations. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. a. What is the days sales outstanding? Round your answer to two decimal places. 43.6 $ b. What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations. days 228,452 c. What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places. 3.09 %

Nottingham Financial purchases computer parts from its suppliers 2/10, net 60.  However, Nottingham routinely stretches accounts payable 10 days beyond the due date. What is the effective annual cost of not taking the trade discount?  How much does the account stretching reduce the cost of not taking the trade discount?

When the company ships a product to a customer on credit, it risks loosing the Cost of Goods Sold if the customer does not pay in 30 days or less. True or False

The credit terms offered to a customer by a Merchandise Business are 2/10, n/30, which means that a. The customer can deduct a 2% discount if the bill is paid within 30 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. c. The customer must pay the bill within 10 days. d. The customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.

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.

Ned Sdn Bhd's trade receivable days have been getting shorter in recent years. Which of the following actions is likely to result in trade receivables days getting longer?   A Negotiating longer credit terms with the company's main customer. B Decreasing inventory levels. C Sending reminder letters as soon as the debt is due. D Offering a discount for prompt payment.

Cash Crunched Company (CCC) purchases computer parts from its suppliers 2/5, net 60.  However, CCC routinely stretches accounts payable 10 days beyond the due date.  How much does the account stretching reduce the cost of not taking the trade discount? Select one: a. 2.04% b. 2.34% c. 12.01% d. 14.35% e. None of the above.

The credit terms offered to a customer by a business firm were 2/10, n/30, which means the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date. the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date. two sales returns can be made within 10 days of the invoice date and no returns thereafter. the customer must pay the bill within 10 days.