A retailer purchases merchandise with a catalog list price of $28,100. The retailer receives a 16% trade discount and has credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period? Oa $23.132 O b. $24.166 Oc. $23.604 O d. $28.100

A retailer purchases merchandise with a catalog list price of $28,100. The retailer receives a 16% trade discount and has credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period? Oa $23.132 O b. $24.166 Oc. $23.604 O d. $28.100

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 13Q: If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the...

See similar textbooks

Related questions

Q: On their books, Boston Enterprises has $3.4 billion in paid-in capital and $1.8 billion in retained…

A: Paid-in capital is the capital of a company that is contributed by investors in exchange for a share…

Q: You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the…

A: Interest expense refers to the cost of borrowing money which is incurred by a company or individual.…

Q: Flounder Equipment Leasing Company leased equipment to Pharoah Healthcare System on January 1, 2025,…

A: To calculate the profit on the sale of Right-of-Use Asset account for Pharoah Healthcare Systems at…

Q: PROBLEM In March, Stinson Company completes Jobs 10 and 11. On March 31, the company sold Job 10 to…

A: Journal Entry:— It is an act of recording transactions in books of account when transaction…

Q: JJ's Company completed the following transactions during the current accounting year ended December…

A: Jack's Company engaged in financial transactions, including borrowing, warranty provisions,…

Q: The current ratio of a company is its current assets divided by its current liabilities. Question 7…

A: CURRENT RATIOCurrent Ratio is the ratio between Current Assets & Current Liabilities. Current…

Q: Required a-1. Compute the percentage of growth in net income from Year 1 to Year 2. a-2. Can…

A: a. Compute the percentage growth in net income from year 1 to year 2:Percentage Growth = [(Net…

Q: Current Attempt in Progress On July 1, 2025, Splish Co. pays $16,452 to Blossom Insurance Co. for a…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: 40 000146 Heathcote Corporation is a manufacturer that uses job-order costing. The company closes…

A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…

Q: The following accounts pertain to Ali and Basil partnership: cash 10000, non-cash assets 90000,…

A: The partnership comes into existence when two or more persons agree to do the business and share…

Q: Required: 1. Suppose Keller uses a traditional costing system with machine hours as the cost driver.…

A: The pre-determined overhead rate is calculated as the estimated overhead costs divided by the…

Q: Mest Company has nine employees. FICA Social Security taxes are 6.2% of the first $132,900 paid to…

A: Social Security levies pay for disability payments and employee pensions. The tax that is deducted…

Q: Finch Company manufactures two products. The budgeted per-unit contribution margin for each product…

A: The break-even point indicates that total units are to be sold by the business entity to recover the…

Q: 1. 2. 3. 4. 5. 6. 7. 8. (a) A tract of land was purchased for $8,900. Bonds payable in the amount of…

A: In simple terms, a cash flow is a statement that segregates total cash flow into three activities…

Q: Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming…

A: the formula for earnings per share of common stock = net income available to common stock…

Q: (a) Prepare the entries to record these transactions. (If no entry is required, select "No entry"…

A: The journal entries are prepared to record the transactions on a regular basis. The dividend is…

Q: Cost of Goods Manufactured, using Variable Costing and Absorption Costing On October 31, the end of…

A: Using variable costing, the variable manufacturing costs are included in the product cost.Using…

Q: Instructions: (a) Calculate budgeted cost of goods sold. (b) Prepare a budgeted income statement for…

A: A financial statement is prepared at the end of the year to show the financial position and earnings…

Q: A general store uses a periodic inventory system and the retail inventory method to estimate ending…

A: Conventional retail method is one of the method of inventory valuation. Under this, first cost to…

Q: On February 1, 2024, Sanyal Motor Products issued 8% bonds, dated February 1, with a face amount of…

A: “Since you have posted multiple questions with multiple sub parts, we will provide the solution only…

Q: Some recent financial statements for Smolira Golf Corporation follow. Assets Current assets Cash…

A: "Since you have asked a question with sub-parts more than three, as per guidelines, the first three…

Q: The data to the right pertain to the operating budget of a manufacturing company. Compute the…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: Samson Corporation has found that 70% of its sales in any given month are credit sales, while the…

A: Cash collection budget is the statement prepared by the entity for the purpose of estimating the…

Q: On January 1, 2023, a company acquired an established coal mine. The company anticipates operating…

A: Net present value:Calculation used to evaluate the investment and financing decisions that involve…

Q: Simpson Glove Company has made the following sales projections for the next six months. All sales…

A: Cash receipts budget is prepared by an organization to estimate the amount of cash to be collected…

Q: Lamothe Kitchen and Bath makes products for the home, which it sells through major retailers and…

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: Assume the following information for a company that produced 10,000 units and sold 8,000 units…

A: The income statement is an essential part of the company's financial statements. It indicates…

Q: Entries for Bank Reconciliation The following data were accumulated for use in reconciling the bank…

A: A bank reconciliation statement is required to be prepared to compare the cash balance as per book…

Q: Arden Books Limited is considering the acquisition of a bookbinding company to expand the publishing…

A: The objective of the question is to assess the financial performance and position of two companies,…

Q: when a company issues 31,000 shares of $3 per value common stock for $30 per share, the journal…

A: Journal means the book of original entry where the first time entry is passed. When share has been…

Q: Harris Welding Company had the following transactions for June. June 1 Tyler Harris invested $9550…

A: The objective of the question is to journalize the transactions of Harris Welding Company for the…

Q: Mickley Company's plantwide predetermined overhead rate is $19.00 per direct labor-hour and its…

A: Job costing is one of useful form of costing being used in business. Under this, customised products…

Q: The adjusted trial balance of Pacific Scientific Corporation on December 31, 2024, the end of the…

A: Income statement is a financial statement that shows the profitability, total revenue and total…

Q: Which of the following assets is NOT subject to cost allocation and does NOT decline in usefulness…

A: Assets are part of the balance sheet which shows the financial position of the company at the end of…

Q: $50,570 payable at the end of the seventh, eighth, ninth, and tenth periods at 11%. (Round factor…

A: Present Value Factor -The time value of money is the basis for the present value factor, which is…

Q: Vanvalkenburg. Inc., manufactures and sells two products: Product GQ5 and Product JO. The company…

A: The objective of the question is to calculate the activity rate for the Order Size activity cost…

Q: Problem 14-24 (Algo) Accrued interest; effective interest; financial statement effects [Appendix…

A: The issuing corporation is liable for bonds that are due. The debt is typically documented as…

Q: On January 1, 2024, Morey, Incorporated, exchanged $180,575 for 25 percent of Amsterdam Corporation.…

A: The acquisition method is commonly used when one organization buys another company. In this method,…

Q: Fish Fillet Incorporated obtains fish and then processes them into frozen fillets and then prepares…

A: Process costing is one of the methods in cost accounting that indulges in the cost calculation of…

Q: a)The Fisher Company paid $42,000 in cash to its landlord on September 1, 2023 for rent covering the…

A: The accounting equation, Assets = Liabilities + Equity, represents the fundamental principle that a…

Q: You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the…

A: Interest charges relate to the costs incurred by a business or individual in adopting finance from…

Q: On July 1 of the current calendar year, Lerman Company paid $8,300 cash for management services to…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: QUESTION The following trial balance has been extracted from the books of W, F and M on 31/12/2022…

A: Partnership : Arrangement between two or more people whereby they agree to manage business…

Q: Required: 1. Suppose Harbour uses a traditional costing system with machine hours as the cost…

A: Overheads are the indirect costs that are not directly traceable from the business…

Q: True or false for inventory net realizable value is it portable cells price less the original cost…

A: The statement "inventory net realizable value is portable cell price less the original cost of…

Q: Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a…

A: As per Federal Tax Laws, an individual's inquiry expenses can be deducted over a period of 180…

Q: Alice Brooks, a professional appraiser, based the value of a subject site on similarities and…

A: Land valuation is the process of estimating the monetary worth of a specific piece of land. It…

Q: Rothschild Chair Company, Incorporated, was indebted to First Lincoln Bank under a $40 million, 10%…

A: Process of Journalizing -Journalizing is the process of recording financial information in the form…

Q: Landen Corporation uses a job-order costing system. At the beginning of the year, the company made…

A: Overhead Rate -When indirect costs, also referred to as overhead, are totaled and divided by an…

Q: In 2024, internal auditors discovered that PKE Displays, Incorporated, had debited an expense…

A: Introduction:Straight-line depreciationThe simplest direct approach for determining an asset's loss…

Question

A retailer purchases merchandise with a catalog list price of $28,100. The retailer receives a 16% trade discount and has credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period?
O a. $23,132
O b. $24,166
O c. $23,604
O d. $28,100

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Trade discounts

VIEW

Step 2: Correct options and its explanations

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays within the discount window, how much will the retailer remit in cash to the manufacturer? A. $19.50 B. $630.50 C. $650 D. $195
Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
A buyer purchases $250 worth of goods on credit from a seller. Shipping charges are $50. The terms of the purchase are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the buyer record for these transactions?
A seller sells $800 worth of goods on credit to a customer, with a cost to the seller of $300. Shipping charges are $100. The terms of the sale are 2/10, n/30, FOB Destination. What, if any, journal entry or entries will the seller record for these transactions?
If a retailer made a purchase in the amount of $350 with credit terms of 2/15, n/60. What would the retailer pay in cash if they received the discount?
A customer returns $690 worth of merchandise and receives a full refund. What accounts recognize this sales return, assuming the customer has not yet remitted payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, purchases D. sales discounts, cost of goods sold
If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the inventory for a full refund, and received an allowance for $65, how much discount would be applied if the customer remitted payment within the discount window?
A customer returns $870 worth of merchandise and receives a full refund. What accounts recognize this sales return (disregarding the merchandise condition entry) if the return occurs before the customer remits payment to the retailer? A. accounts receivable, sales returns and allowances B. accounts receivable, cash C. sales returns and allowances, merchandise inventory D. accounts receivable, cost of goods sold
A retailer purchases merchandise with a catalog list price of $28,600. The retailer receives a 22% trade discount and has credit terms of 2/10, n/30. How much cash will be needed to pay this invoice within the discount period (Round your answer to the nearest dollar)? Oa. $22,308 Ob. $21,862 Oc. $22,880 Od. $28,600
A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays within the discount window, how much will they remit in cash to the retailer? Assume the perpetual inventory system is used. A.$1,200 B.$500 C.$50 D.$1,250
Merchandise subject to terms 3/10, n/25, FOB shipping point, is sold on account to a customer for $20,000. What is the amount of the sales discount allowed in case the customer pays within the discount period? Select one: a. $600 b. $460 c. $150 d. $260
Merchandise subject to terms 4/15, n/28, FOB shipping point, is sold on account to a customer for $35,000. What is the amount of the cash discount allowed in case the customer pays within the discount period? Select one: a. $1,400 b. $9,800 c. $1,500 d. $5,250