Answer:$588
Credit terms of 2/10 n/30 means 2% discount if paid within 10 days.So if Company A sells $600 merchandise on account and avails discount for early payment , the discount would be 600 x 2% = 12
Therefore net payment check would be = $600 - $12 = $588
Company A sells $600 of merchandise on account to Company B with credit terms of 2/10,n/30....
Part II 7. Holt Company sells merchandise on account for $4,000 to Jones Company with credit terms of 2/10, n/30. Jones Company returns $500 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check? 8. The collection of a $10500 account after the 2 percent discount period will result in a credit to: 9. The collection of a $600 account after the...
Larson Company on July 15 sells merchandise on account to Stuart Co. for $1,000, terms 2/10, n/30. On July 20 Stuart Co. returns merchandise worth $400 to Larson Company. On July 26 payment is received from Stuart Co. for the balance due. What is the amount of cash received? a. $600 b. $588 c. $580 d. $1,000
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Purchase-related transaction Burr Company purchased merchandise on account from a supplier for $18,000, terms 2/10, n/30. Burr Company returned $3,000 of the merchandise before payment was made and received full credit. a. If Burr Company pays the invoice within the discount period, what is the amount of cash required for the payment? $ b. What account is decreased by Burr Company to record the return? Inventory
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Purchase-Related Transactions
The Wheatland Company purchased merchandise on account from a
supplier for $30,000, terms 1/10, n/30. The Wheatland Company
returned $8,000 of the merchandise and received full credit.
a. What is the amount of cash required for the
payment within the discount period?
Purchase-Related Transactions The Wheatland Company purchased merchandise on account from a supplier for $30,000, terms 1/10, n/30. The wheatland Company returned $8,000 of the merchandise and received full credit. a. What is the amount of cash...
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