Question

9. A credit sale of $4,000 is made on April 25, terms 2/10, n/30, on which a return of $200 is granted on April 28. What amount is received as payment in full on May 4? A. $3,724 B. $3,800 C.$3,920 D. $4,000

please i need all answers, and clear writing

Answer 1

9. The right option is "A. $3,724 ".

Credit sale made on 25th April = $4,000

Returns made = $200

terms of payment = 2/10, N/30.

Terms of payment mean that 2% discount will be allowed if payment is made within 10 days.

Amount paid on 4th May i.e. within 10 days; therefore 2% discount will be allowed on the payment.

Amount to be paid = Net purchase - 2% = ( $4,000 - $200 ) - 2% = $3,724

10. The right option is " $7.3 ".

Average cost = Total cost of purchases / total units purchased = ( 100 units @ $7 ) + ( 500 units @ $6 ) + ( 400 units @ $9) / 1000 units = $7.30 .

11. The right option is "B. $239,000 ".

Uncollectible accounts expense = 5% of credit sales
where, credit sales = 60% of $300,000 = $180,000

Uncollectible accounts expense = 5% of credit sales = 5% of $180,000 = $9,000

Allowance for Doubtful accounts = Allowance for Doubtful accounts before + $9,000 = $2,000 + $9,000 = $11,000

Net realizable of accounts receivable in the balance sheet on May 31 = Accounts receivable balance - Total Allowance for doubtful accounts = $250,000 - $11,000 = $239,000.

12. The right option is "C. $0.34 ".

Depreciation cost per unit using units-of-activity-method = ( Cost - Salvage value ) / Estimated units during the useful life = ( $39,000 - $5,000 ) / 100,000 units = $0.34