Your company purchases $50,000 of inventory from a wholesaler that allows you 45 days to pay....
Your company purchases $50,000 of inventory from a wholesaler that allows you 45 days to pay. In addition, the wholesaler offers a 3% discount if payment is made within 12 days. These payment terms would be expressed as:
Multiple Choice
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n/45, 3/12.
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n/45,.03/12.
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3/12, n/45.
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03/12, n/45.
Homework Answers
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Option C is the answer 3/12, n/45 |
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| It implies that a sales discount of 3% is given when the payment is received within 12 days. And the time allowed to payment is 45 days | |
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Your company purchases $50,000 of inventory from a wholesaler
that allows you 45 days to pay....
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4) A company that uses the perpetual inventory system purchases inventory for $62,000 on account, with...
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Your company uses the Periodic Inventory method. Your vendor offers you terms of 2/10, net 30. What will your journal entry include to recognizing payment within the grace period? Select one: O a.cr. Accounts Payable O b. cr. Purchases Discounts O c. dr. Cash O d.cr. Accounts Receivable O ecr. Merchandise Inventory Your company uses the Perpetual Inventory method. Your vendor offers you terms of 2/10, net 30. What will your journal entry include to recognizing payment within the grace...
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