Homework Answers
11.
A trade discount is a reduction in price below the list price.
Correct option is B.
12.
| Accounts payable | 2,500 | |
| Merchandise inventory | 50 | |
| Cash | 2,450 |
This entry reflects a payment of the account payable and recognition of a 2% cash discount taken.
Correct option is D.
13.
Final amount due = Purchase - Purchase return
= 1,800-200
= $1,600
Cash payment = final due - Discount
= 1,600 - 1,600 x 2%
= 1,600-32
= $1,568
Correct option is C.
14.
Sales returns refer to merchandise that customers return to the seller after the sale.
Correct option is A.
Kindly comment if you need further assistance. Thanks‼!
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