Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of 2/10, n/30. What is the net cost of the goods if Kingbird, Inc. pays within the discount period?
Q: Assume that Guardian Company uses a periodic inventory system and has these account balances:…
A: Net cost of purchases = Purchases - Purchase Returns and Allowances - Purchase Discounts +…
Q: An item retailing for P10,000, subject to a trade discount of 25%, is paid for within the discount…
A: Here the terms 2/10,n/30 means 2% cash discount will be provided if payment has made with in 10…
Q: Sunland Company purchased merchandise inventory with an invoice price of $11500 and credit terms of…
A: The term 2/10, and n/30 state that the purchaser can avail of a discount of 2 percent if he paid the…
Q: On April 2, Kelvin sold $35000 of inventory items on credit with the terms 2/10, net 30. Payment on…
A: Option d is correct.
Q: Marigold Corp. recorded the return of $170 of goods originally sold on credit to Discount…
A: The sales return is connected with sales return and allowance and account receivable. As the account…
Q: Assume that a company records purchases net of discount. If the company bought merchandise valued at…
A: Accounts payable will be recorded as net of discount as purchases are recorded net of discount. The…
Q: he entry to record the receipt of payment within the discount period on a sale of $2400 with terms…
A: Terms 2/8, n/30 indicate that if the payment is made within 8 days discount shall be allowed at the…
Q: A wholesaler sold merchandise inventory with in invoice price RO 160,000 to the customer of business…
A: Formula: Cash discount: Goods sold on credit base. If the amount paid with in the discount period…
Q: Based on the following information, what would be recorded as purchases discount if the invoice is…
A: Purchase discount is calculated on the net value and does not include the fright paid and purchase…
Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…
A: Formula: Discount amount = Invoice amount x Discount rate
Q: On December 20, 2020, Guijo Company purchased goods with a list price of P810,000 from a supplier.…
A: If the purchase is settled within 20 days, the customer is eligible to avail discount at 1%. In the…
Q: On June 16, 2021, llano sold merchandise to Pascual for P6,000, terms 2/10, n/30. Shipping costs…
A: As per our protocol we are authorized to answer one question or 3 subparts only but since you have…
Q: Merchandise costing $668 is sold for $1,230 on terms 2/10, n/30. If the buyer pays within the…
A:
Q: What is the net cost of the goods if Marigold Company pays within the discount period?
A: If payment is made within discount period, then Marigold would receive the discount offered by…
Q: transportation is prepaid by the seller, and that the invoice is paid within the 20. A sales invoice…
A: Discount is provided if the payment is made within the specified period.
Q: Winter Company received quotations from two entities for an item of merchandise as follows: From…
A: Trade discount is that discount which is given on list price of product to all the customers. Under…
Q: Winter Company received quotations from two entities for an item of merchandise as follows: From…
A: Trade discount and cash discount are two different types of discount offered by seller to the buyer.…
Q: Robles Co. sells P1,000 of inventory to Salas Co.for cash. Robles paid P650 for the merchandise.…
A:
Q: ABC Company sold merchandise with P10,000 list price, subject to trade discount of 25%, and is paid…
A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…
Q: Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 1/10, net 30, for $10,000.…
A: Journal is a place where journal entries are recorded in the book keeping system before ledger…
Q: Shell Company purchased merchandise inventory with an invoice price of $4,000 and credit terms of…
A: Given Information : Invoice price of merchandise inventory purchased = $4,000 Credit terms = 2/10,…
Q: Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of…
A: SOLUTION 1- GIVEN, PURCHASED AMOUNT = 13100 DISCOUNT RATE = 2%
Q: Cathy's bakery purchased goods for $4,400 (including GST) on credit, terms 4/15, n/30. The entry in…
A: A perpetual inventory system is one in which inventory records are updated on a real time basis.…
Q: Winter Company received quotations from two entities for an item of merchandise as follows: From…
A: Credit terms 2/10, n/30 means that customer will get a discount of 2%, if payment is being made in…
Q: FOREVER Inc purchased P200,000 worth of goods with trade discount of 15% and 10% from the list…
A: Trade discount is that type of discount which is given on the list price of the goods and this is…
Q: A retailer pays on credit for $650 worth of inventory, terms 3/10, n/40. If the merchandiser pays…
A: Perpetual inventory system: The perpetual inventory system records and updates the inventory after…
Q: Sayers Co. sold merchandise on account to a customer for $90,000 terms 2/10, n/30. The cost of the…
A: Note: Under net method, Sales is recognized after considering the discount. Net Sales = Sales -…
Q: Corinto Co. sold merchandise to Genesis Co. on account, P18,000, terms 2/15, net 45. The cost of the…
A: Solution:- Calculation of net sales:-
Q: Kicks Company, a VAT taxpayer, uses the perpetual inventory method. Refer to the T-account below on…
A: VAT Payable = VAT Collected from Customers - VAT Paid on Purchase VAT Rate = 12%
Q: Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 1/10, net 30, for $11,700.…
A: Solution) Date Particulars Debt Credit Accounts Payable. Emma Co. A/c 11,700 Fright in…
Q: er 1, Jerry's Lighting purchased merchandise with a list price of $4,100 with credit terms of 3/10,…
A: Solution: Amount of discount will be computed on the list price reduced by returns of merchandise if…
Q: Euphoria Corporation uses the perpetual inventory method. On March 1, it purchased P30,000 of…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Hussain Company purchased inventory on account from a supplier for Rs. 65,000, terms 1/10, n/30.…
A: Periodic and perpetual inventory systems are two main systems of inventory valuation. Under periodic…
Q: on february 3 smart company sold merchandise in the amount of 2000 to truman company with credit…
A: Perpetual inventory system: The perpetual inventory system involves tracking inventory after every,…
Q: Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10,…
A: Invoice Price = 22,000 Credit Terms = 1/10,n/15 1% discount will be Provided if payment has made…
Q: Golf World sold merchandise to Mulligans for $10,000, offering terms of 1/15, n/30. Mulligans paid…
A: Given that: Sale value of merchandise = $10,000
Q: A Retailer purchased merchandise inventory with an invoice price of RO 80,000 and credit terms are…
A: The net cost of goods sold if payment made within discount period is 78,400 Net Cost of Goods…
Q: Bramble Corp. uses the perpetual inventory and the gross method. On March 1, it purchased $ 54000 of…
A: Total purchase $ 54,000 Return $ (5,400) Net purchase $…
Q: Vanessa company purchases merchandise with a list price of P25,000. The company receives a 35% trade…
A: Trade discount = List price x trade discount rate = P25000 x 35% = P8,750
Q: Gabriela uses the perpetual inventory system. Gabriela purchased merchandise with an invoice price…
A: The foremost reporting of the transactions is to be done in the journal. These are recorded to…
Q: If merchandise is sold on account to a customer for $1,000, terms FOB shipping point, 1/10, n/30,…
A: Lets understand the basics. Seller for attracting early payment, gives the discount term to the…
Q: A wholesaler sold merchandise inventory with in invoice price RO 16,000 to the customer of business…
A: Credit terms 3/10, n/60 means customer will get a discount of 3% if payment is made within 10 days,…
Q: A customer pays on credit for $1,250 worth of merchandise, terms 4/15, n/30. If the customer pays…
A: Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains…
Q: Willetta Company purchases inventory for $19,000 with terms 2/10, n/30. It then returns $2,900 of…
A: Terms 2/10, n/30 means 2% discount will be given if payment is made within 10 days. Given in the…
Q: The following items were taken from the records of FDN Trading: Purchases, P30,000; Purchase Returns…
A: Cost of goods sold = Purchases - Purchase returns + Freight on merchandise purchased = P30,000 -…
Q: Emma Co. sold to Isabella Co. merchandise on account FOB shipping point, 2/10, net 30, for $8,100.…
A: Discount on payment = Purchase value x discount rate = 8100*2% = 162
Q: Cruise Industries purchased $10,800 of merchandise on February 1, 2020, subject to a trade discount…
A: a. Assuming that Cruise uses the perpetual method for recording merchandise transactions, record…
Q: A wholesaler sold merchandise inventory with in invoice price RO 16,000 to the customer of business…
A: COGS stands for Cost of goods sold which is defined as the direct cost of producing the goods sold…
Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of 2/10, n/30. What is the net cost of the goods if Kingbird, Inc. pays within the discount period?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- If a retailer purchased inventory in the amount of $750, terms 2/10, n/60, returned $30 of the inventory for a full refund, and received an allowance for $95, how much would the discount be if the retailer remitted payment within the discount window?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?If a retailer purchased inventory in the amount of $680, terms 3/10, n/60, returned $120 of the inventory for a full refund, and received an allowance for $70, how much would the discount be if the retailer remitted payment within the discount window?
- 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 soldA Retailer purchased merchandise inventory with an invoice price of RO 80,000 and credit terms are 2/10, n/30. What is the net cost of the goods assuming that if the retailer made the payment within the discount period?Assume the following information: merchandise is sold on account to customer for P120,000, FOB Shipping Point, 2/10, n/30. The seller paid transportation cost of P6,000. What is the amount of remittance due within the discount period?
- Merchandise invoiced at $8,900 is sold on terms 1/10, n/30. If the buyer pays within the discount period, what amount will be reported on the income statement as net sales?The entry to record the receipt of payment within the discount period on a sale of $2400 with terms of 2/8, n/30 will include a Answer- credit to accounts receivable for $2400 Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of 2/10, n/30. What is the net cost of the goods if Kingbird, Inc. pays within the discount period? Answer- 12,838 Just tell me the difference between the phrasing of the two questions. In other words, why don't I multiply 0.02 percent to 2,400 and then subtract $48 to get 2352 debit to sales revenue for the first question?If merchandise sells for $3,500, with terms 3/15.n/45 , and the cost of the inventory sold is $2,100, the amount charged to sales under the net method of recording sales discounts is?
- 1. Kingbird, Inc. purchased merchandise inventory with an invoice price of $13100 and credit terms of 2/10, n/30. What is the net cost of the goods if Kingbird, Inc. pays within the discount period? 2. The entry to record the receipt of payment within the discount period on a sale of $2400 with terms of 2/8, n/30 will include a Answer for #1- 12,838 Answer for #2- Entry to accounts receivable for $2400 Why do you approach these questions differently? What are the keywords to look out for that tell me I do not approach question #2 the same as question #1?The Wheatland Company purchased merchandise on account from a supplier for $30,000, terms 1/10, n/30. The Wheatland Company returned $8,000 of the merchandise and received full credit.a. What is the amount of cash required for the payment within the discount period?b. Under a perpetual inventory system, what account is credited by The Wheatland Company to record the return?Sunland Company purchased merchandise inventory with an invoice price of $11500 and credit terms of 2/10, n/30. What is the net cost of the goods if Sunland Company pays within the discount period? a.) $10350 b.) $11270 c.) $11500 d.) $10580