Concept explainers
Sales Discount:
Sales discount is a way by which the seller can get the cash payments easily and before time. This is the discount given on the selling price to the customer buying the product which makes them satisfied and for seller it helps in getting the payments fast.
The term
The sales discount in the name of quantity discount is the discount given on the buying of bulk quantity of any goods.
The assistance of accounting information for each business in achieving its discount policy objectives.
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Cornerstones of Financial Accounting
- Suppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $8,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 17%. If the average sticker price (list price) of these remaining vehicles at your dealership is $26,500, calculate the following. (a) What is the amount of the trade discount, including the incentive (in $)? %24 (b) What is the trade discount rate (in percent)? Round to the nearest tenth of a percent. % (c) What is the net price (invoice price) to your dealership (in $)? (d) If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the list price? Round to the nearest…arrow_forwardSuppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $8,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 19%. If the average sticker price (list price) of these remaining vehicles at your dealership is $24,500, calculate the following. (a) What is the amount of the trade discount, including the incentive (in $)? $ 12,655 (b) What is the trade discount rate (in percent)? Round to the nearest tenth of a percent. 51.7 % (c) What is the net price (invoice price) to your dealership (in $)? $ 11,845 (d) If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the list price?…arrow_forwardSuppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $8,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 17%. If the average sticker price (list price) of these remaining vehicles at your dealership is $26,500, calculate the following. (a) What is the amount of the trade discount, including the incentive (in $)? (b) What is the trade discount rate (in percent)? Round to the nearest tenth of a percent. (c) What is the net price (invoice price) to your dealership (in $)? (d) If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the totapercentage savings to the consumer based on the list price? Round to the nearest tenth of…arrow_forward
- Suppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $8,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 19%. If the average sticker price (list price) of these remaining vehicles at your dealership is $24,500, calculate the following. (a) What is the amount of the trade discount, including the incentive (in $)? $ (b) What is the trade discount rate (in percent)? Round to the nearest tenth of a percent. % (c) What is the net price (invoice price) to your dealership (in $)? $ (d) If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the list…arrow_forwardSuppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $8,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 19%. If the average sticker price (Ilist price) of these remaining vehicles at your dealership is $24,500, calculate the following. (a) What is the amount of the trade discount, including the incentive (in $)? $ 12,655 (b) What is the trade discount rate (in percent)? Round to the nearest tenth of a percent. 51.7 % (c) What is the net price (invoice price) to your dealership (in $)? $ 11,845 If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the list price? Round…arrow_forwardMARYJANE, IN., a grocery business, operates a customer loyalty program. MARYJANE grants its program members points when they spend a specified amount of purchases. The points have no expiry date, and they can use the points for further purchases. During 2021, the customers earned 80,000 points, but management expects that 75% of these points will be redeemed. The stand-alone selling price of each loyalty point is estimated at Php 20. The sales during 2021 amounted to Php 6,800,000 on stand-alone selling price. On December 31, 2021, 28,800 points have been redeemed. In 2022, the management revised its expectations and now expects 85% of the points to be redeemed. In 2022, the 12,000 points were redeemed. a. 1,367,481 b. 1,200,000 c. 1,020,000 d. 1,295,238 What amount of the transaction price should be allocated to the groceries?arrow_forward
- Suppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $8,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets. As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 16%. If the average sticker price (list price) of these remaining vehicles at your dealership is $26,500, calculate the following. ( a)What is the amount of the trade discount, including the incentive (in $)? $ 12240. (b)What is the trade discount rate (in percent)? Round to the nearest tenth of a percent. 46.2 % (c)What is the net price (invoice price) to your dealership (in $)? $ (d)If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the…arrow_forwardSuppose a certain car manufacturer's incentive program designed to reduce inventory of certain low-selling models offers a $9,000 extra dealer incentive for each of these vehicles that the dealer moved into its rental or service fleets.As the accountant for a dealership with a number of these vehicles left in stock, your manager has asked you to calculate certain invoice figures. The normal trade discount from this car manufacturer is 16%. If the average sticker price (list price) of these remaining vehicles at your dealership is $24,500, calculate the following.(a)What is the amount of the trade discount, including the incentive (in $)?$ (b)What is the trade discount rate (in percent)? Round to the nearest tenth of a percent.%(c)What is the net price (invoice price) to your dealership (in $)?$ (d)If the cars were then sold from the fleets at $1,000 over "invoice" (net price), what is the total percentage savings to the consumer based on the list price? Round to the nearest tenth of a…arrow_forwardOriole Dinner Box Inc. is a catering company that sells meal kits that its customers can take home and quickly prepare. The company sells its meal kits at local grocery stores and has recently begun to offer a monthly subscription service, which delivers meal kits to the customer's home. Single meal kits can be purchased at grocery stores. Approximately 10% of the kits shipped to grocery stores each month are returned unsold and are then discarded. Oriole charges the grocery stores $15 for each meal kit. In December 2024, Oriole began selling three- month subscriptions for $900. Subscriptions are paid in advance and are non-cancellable. Oriole sold 840 subscriptions on December 1,2024, which entitle the subscriber to 15 meal kits each month beginning in December 2024. During December, 4,620 meal kits were sold, on account, to grocery stores and all required subscriber meals were delivered. Grocery stores have 30-day terms of payment with Oriole. (a1) Your answer is correct. Determine…arrow_forward
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- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning