Question

Question 1 Answer saved Marked out of 4.00p Flag question Cash Discount Calculations On April 1, Gerald Company sold merchandise with a list price of $75,000. For each of the sales terms below, determine the proper amount of cash received: 2 3 4 Credit Terms Date Paid 1/15, n/30 April 14 n/30 April 28 2/10, n/30 April 8 1/10, n/30 April 15 पी 2 $ पी 0 पी पी & Save Answers Next →

Answer 1

Requirement 1 1/15 n/30 Means : 1% Cash Discount if payment was made with in 15 days Balance is Due for 30 Days As Payment was made with in Discounted period i.e., 15 Days Amount = $75000*(100%-1%) $ 74,250.00 Requirement 2 n/30 is Balance due for 30 days Amount Received with in period = $75,000 $ 75,000.00 Requirement 3 2/10 n/30 Means: 2% Discount if payment is made with in 10 days As Payment was made with in Discounted period i.e., 10 Days Amount = $75000*(100%-2%) $ 73,500.00 Requirement 4 1/10 n/30 Means: 1% Discount if payment is made with in 10 days As Payment was not made with in Discounted period Amount = $75000