Lynman Nurseries purchased seeds costing $25,000 with terms of 3/15 net 30 EOM on January 12th....
Lynman Nurseries purchased seeds costing $25,000 with terms of 3/15 net 30 EOM on January 12th. How much will the firm pay if it takes the cash discount? What is the approximate cost of giving up the cash discount, using the simplified formula?
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Lynman Nurseries purchased seeds costing $25,000 with terms of
3/15 net 30 EOM on January 12th....
Cash Discount Go For Broke Mining was extended credit terms of 3/15 net 30 EOM. The...
Cash Discount Go For Broke Mining was extended credit terms of 3/15 net 30 EOM. The cost of giving up the cash discount, assuming payment would be made on the last day of the credit period, would be ________. If the firm were able to stretch its accounts payable to 60 days without damaging its credit rating, the cost of giving up the cash discount would only be ________.
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Early Payment discount decisions Prairie Manufacturing has four possible suppliers, all of which offer different credit terms. Except for the differences in credit terms, their products and services are virtually identical. The credit terms offered by these suppliers are shown in the following table: E: (Note: Assume a 365-day year.) a. Calculate the approximate cost of giving up the cash discount from each supplier. b. If...
Early Payment discount decisions: Prairie Manufacturing has four possible suppliers, all of which offer different credit...
Early Payment discount decisions: Prairie Manufacturing has four possible suppliers, all of which offer different credit terms. Except for the differences in creditterms, their products and services are virtually identical. The credit terms offered by these suppliers are shown in the followingtable: SUPPLIER CREDIT TERM J 3/5 NET 30 EOM K 4/30 NET 100 EOM L 2/15 NET 60 EOM M 2/10 NET 120 EOM . (Assume a 365-day year.) A. Calculate the approximate cost of giving...
Early Payment discount decisions: Prairie Manufacturing has four possible suppliers, all of which offer different credit...
Early Payment discount decisions: Prairie Manufacturing has four possible suppliers, all of which offer different credit terms. Except for the differences in credit terms, their products and services are virtually identical. The credit terms offered by these suppliers are shown in the following table: SUPPLIER CREDIT TERM J 3/5 NET 30 EOM K 4/30 NET 100 EOM L 2/15 NET 60 EOM M 2/10 NET 120 EOM . (Assume a 365-day year.) A. Calculate the approximate cost...
A. A firm bought some material with a purchase price of $1,000 and credit terms of...
A. A firm bought some material with a purchase price of $1,000 and credit terms of 1/10 net 30. The firm paid for these goods on the 5th day after the date of sale. What is the cost of giving up the cash discount? How much must the firm pay for the goods. B. A firm is offered credit terms of 2/10 net 45 by most of its suppliers. The firm also has a credit line available at a local...
More Info Wov. 4 Purchased merchandise inventory on account from Valsad Company, $6,000. Terms 3/10,n/EOM, FOB...
4 Purchased merchandise inventory on account from Valsad Company, $ 6,000. Terms 3 / 10, n/EOM, FOB shipping point.6 Paid freight bill of $ 170 on November 4 purchase.8 Returned half of the inventory purchased on November 4 from Valsad Company.10 Sold merchandise inventory for cash, $ 1,900. Cost of goods; $ 760. FOB destination.11 Sold merchandise inventory to Garfunkel Corporation, $ 10,600, on account. Terms 3 / 10, n / EOM. Cost of goods, $ 5,300. FOB shipping point.12...
On November 15, 2015, Shields Company purchased inventory costing $12,400 on credit. The credit terms were...
On November 15, 2015, Shields Company purchased inventory costing $12,400 on credit. The credit terms were 1/10, n//30. a. Assume that Shields Company paid the invoice on November 23, 2015. Prepare journal entries to record the purchase of this inventory and the cash payment to the supplier using the net-of-discount method. General Journal Date Description Debit Credit 11/15 Inventory Answer 12,276 Answer 0 Accounts Payable Answer 0 Answer 12,276 11/23 Accounts Payable Answer 12,276 Answer 0 Cash Answer 0 Answer...
Smart Inc. is going to purchase a $20,000 machine. The vendor offered a term of 2/15...
Smart Inc. is going to purchase a $20,000 machine. The vendor offered a term of 2/15 net 45 of payment. If Smart takes a cash discount when should a company make payment and how much is payment? If company give up discount when and how much should company pay? What is the cost of giving up the discount?
A supplier to your firm offers credit terms of 2/15 net 45 however, your firm never takes advanta...
A supplier to your firm offers credit terms of 2/15 net 45 however, your firm never takes advantage of the discount but instead always pays full price on day 45. Your finance intern claims that your firm would be better off borrowing money from an existing but little used line of credit at a current annualized rate of 8%, pay the firm providing credit at the end of the discount period (day 15) and to then repay the line of...
Goods costing $1,900 are purchased on account on July 15 with credit terms of 2/10, n/30....
Goods costing $1,900 are purchased on account on July
15 with credit terms of 2/10, n/30. On July 18, the purchaser
receives a $300 credit from the supplier for damaged goods. Give
the journal entry on July 24 to record payment of the balance due
within the discount
period.
Question 11 Goods costing $1,900 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18, the purchaser receives a $300 credit from the supplier for...
please use control scroll wheel to view the
question if it is not visible.
Early Payment discount decisions Prairie Manufacturing has four possible suppliers, all of which offer different credit terms. Except for the differences in credit terms, their products and services are virtually identical. The credit terms offered by these suppliers are shown in the following table: E: (Note: Assume a 365-day year.) a. Calculate the approximate cost of giving up the cash discount from each supplier. b. If...
4 Purchased merchandise inventory on account from Valsad Company, $ 6,000. Terms 3 / 10, n/EOM, FOB shipping point.6 Paid freight bill of $ 170 on November 4 purchase.8 Returned half of the inventory purchased on November 4 from Valsad Company.10 Sold merchandise inventory for cash, $ 1,900. Cost of goods; $ 760. FOB destination.11 Sold merchandise inventory to Garfunkel Corporation, $ 10,600, on account. Terms 3 / 10, n / EOM. Cost of goods, $ 5,300. FOB shipping point.12...
Goods costing $1,900 are purchased on account on July
15 with credit terms of 2/10, n/30. On July 18, the purchaser
receives a $300 credit from the supplier for damaged goods. Give
the journal entry on July 24 to record payment of the balance due
within the discount
period.
Question 11 Goods costing $1,900 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18, the purchaser receives a $300 credit from the supplier for...
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