In response to the weak economy, your company’s sales force is urging you, the sales manager, to change sales terms from 1/10, n/30 to 2/10, n/45. Explain what these terms mean and how this switch could increase or decrease your company’s profits.
Answer to relevant QuestionsWhy are contra-revenue accounts used rather than directly deducting from the Sales Revenue account? Why is a physical count of inventory necessary in a periodic inventory system? Why is it still necessary in a perpetual inventory system? Nord Store’s perpetual accounting system indicated ending inventory of $ 20,000, cost of goods sold of $ 100,000, and net sales of $ 150,000. A year-end inventory count determined that goods costing $ 15,000 were actually ...Dillard’s, Inc., operates department stores located primarily in the Southwest, Southeast, and Mid-west. In its 2013 third-quarter report, the company reported Cost of Goods Sold of $ 1.0 billion, ending inventory for the ...During the months of January and February, Solitare Corporation sold goods to three customers. The sequence of events was as follows: Jan. 6 Sold goods for $ 100 to Wizard Inc. with terms 2/10, n/30. The goods cost Solitare ...
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