Question

QUESTIONS Which of the following is CORRECT? Under the perpetual inventory wystem, when a purchaser makes payment within the discount period, the amount of discount will be credited to the Merchandise Inventory account Purchase discounts are calculated on the amount of the merchandise purchased including freight costs. A purchase discount is the amount offered to the purchaser for delaying the payment to the seller Credit terms of a merchandising company are 1/15, net 40. This means that the buyer can receive a discount of 1% f the invoice is paid within 40 days of the invoice dute, QUESTION 9 The Allowance for Bad Debts account has a credit balance of $8,300 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using of-receivables method, the company's management estimates that uncollectible accounts will be $14,700. What will be the balance of the Allowance for Bad Debts reported on the balance sheet? $23,000 $13,230 $14,700 $6,400

Answer 1

As HOMEWORKLIB RULES's policy I can answer only the 1st question. For answers of other question please post the questions separately :

Answer : Under the perpetual inventory system, when a purchaser makes payment within the discount period, the amount of discount will be credited to the Merchandise inventory account

If you have any doubt then please ask

Please do rate the answer