On the 1st of April, your company has sold some product to a customer on terms...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On the 1st of April, your company has sold some product to a customer on terms 3/10 net 30, Dec 10. This means that the customer will get 3 percent discount for paying within 10th of December, otherwise full payment must be made by the 30th of December. the customer will get 3 percent discount for paying within the 20th of December. Otherwise full payment must be made by the 30th of December. the customer will get 3 percent discount for paying within the 20th of December. Otherwise full payment must be made by the 10th of January next year. the customer will get 3 percent discount for paying the seller 10th of April, otherwise full payment must be made by 30th of April. The objective of setting standard is to Determine which customers are eligible for credit and how much Judge the character of customers Determine if the customer will make an honest effort to pay. Determine if the customer has a standard economic condition in the market that it serves. A long cash conversion cycle is likely to be characterised by Low inventory No inventory In deciding the optimal level of current assets for a firm, its management is concerned with a tradeoff between Short-term and long-term borrowing Profitability and risk Equity and debt Liquidity and risk Mostafa LTD. sells its products on terms 3/10 net 40. 60 percent of the customers are expected to take the discount and pay on the last day of discount period. 35 percent are not expected to take the discount and pay on the last day of the credit period, while the remaining customers are expected to pay 10 days late. The days sales outstanding for Mostafa LTD. is approximately 23 days 40 days 25 days 20 days On the 1st of April, your company has sold some product to a customer on terms 3/10 net 30, Dec 10. This means that the customer will get 3 percent discount for paying within 10th of December, otherwise full payment must be made by the 30th of December. the customer will get 3 percent discount for paying within the 20th of December. Otherwise full payment must be made by the 30th of December. the customer will get 3 percent discount for paying within the 20th of December. Otherwise full payment must be made by the 10th of January next year. the customer will get 3 percent discount for paying the seller 10th of April, otherwise full payment must be made by 30th of April. The objective of setting standard is to Determine which customers are eligible for credit and how much Judge the character of customers Determine if the customer will make an honest effort to pay. Determine if the customer has a standard economic condition in the market that it serves. A long cash conversion cycle is likely to be characterised by Low inventory No inventory In deciding the optimal level of current assets for a firm, its management is concerned with a tradeoff between Short-term and long-term borrowing Profitability and risk Equity and debt Liquidity and risk Mostafa LTD. sells its products on terms 3/10 net 40. 60 percent of the customers are expected to take the discount and pay on the last day of discount period. 35 percent are not expected to take the discount and pay on the last day of the credit period, while the remaining customers are expected to pay 10 days late. The days sales outstanding for Mostafa LTD. is approximately 23 days 40 days 25 days 20 days
Expert Answer:
Answer rating: 100% (QA)
1 The customer will get 3 percent discount for paying within 10 days of the sale otherwise full payment must be made by the 30 th of December The cust... View the full answer
Related Book For
Survey of Accounting
ISBN: 978-0078110856
3rd Edition
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor-Yi
Posted Date:
Students also viewed these accounting questions
-
Bank Reconciliation and Related Journal Entries Required: 1. Prepare a bank reconciliation as of October 31, 20-, If required, round your answers to the nearest cent. 2. Prepare the required journal...
-
Prepare the journal entries to record the following transactions on Monroe Companys books using a perpetual inventory system. (a) On March 2, Monroe Company sold $900,000 of merchandise to Churchill...
-
Prepare the journal entries to record the following transactions on Derrick Companys books using a perpetual inventory system. (a) On March 2, Derrick Company sold $900,000 of merchandise to Rose...
-
a. Calculate the quick ratio of company B in FY2020. State what factors need to be considered when evaluating company B?s short-term liquidity and analyse the impact of these factors on the...
-
A $100 investment purchased one year ago is now worth $110. It also earned $10 of income during the year. Determine the investments: a. Income yield. b. Capital gain yield. c. Rate of total return.
-
The assembly consists of an A36 steel rod CB and 2014-T6 aluminum rod BA, each having a diameter of 20 mm. If the rod is subjected to the axial loadings at A and at the coupling B, determine the...
-
German Chocolates Ltd produces blocks of chocolate. Raw materials in the form of cocoa solids, milk and sugar are added at the beginning of the process, flavouring, fruit and nuts are added half-way...
-
1. Use descriptive statistics to summarize the data from the two studies. What are your preliminary observations about the depression scores? 2. Use analysis of variance on both data sets. State the...
-
Durkheim's idea of the collective consciousness. What are "social facts"? Explain how Durkheim defined "collective consciousness." Is collective consciousness a social fact? Define this and say why...
-
Interest During Construction Matrix Inc. borrowed $1,100,000 at 8% to finance the construction of a new building for its own use. Construction began on January 1, 2019, and was completed on October...
-
Leadership is not about functioning above the problem. It is about functioning within the problem. Fred had done a masterful job establishing a leadership team in good times. He established deacons...
-
During an initial client meeting with Broadside Enterprises, the external auditors, RayBright CPAS are discussing the client's needs. Broadside management has agreed to hire the auditor and provided...
-
On October 19, 2017, Matador Company borrowed $100,000 from FirstBank. The terms of the note were 115 days at 12% per year (simple interest). (5 marks) [I = Prt] a. On what date does the note mature?...
-
What are a few normal blunders that can happen while recording charges, and how might they be remedied?
-
K={q0, q1, q2, q3}, = {a, b}, s = q0, F = {q0, q1, q2}, and is the function tabulated below. O d(q, o) q0 q q0 q0 q1 q1 1. [15 points] Let M be the deterministic finite automaton (K, E, d, s, F),...
-
Consider the metabolic network shown below. Assume that all reactions follow mass action kinetics. Also assume the influx rate V71 is 20 mM/min, the efflux rate V3.0 is 30 mM/min, and all other...
-
Given the following 6-bit data message, i.e. 101101, and the generator sequence 100 (i.e. coefficients of generator polynomial P(#)), (a) Determine the CRC bits and the transmitted bit sequence. (b)...
-
Graph one period of each function. y = 4 cos x
-
Khan Company made several purchases of long-term assets in 2012. The details of each purchase are presented here. New Office Equipment 1. List price: $40,000; terms: 1/10 n/30; paid within the...
-
List several control activities of an effective internal control system.
-
Chan Corp. completed the following transactions in 2012, the first year of operation. 1. Issued 20,000 shares of $20 par common stock for $30 per share. 2. Issued 5,000 shares of $50 par, 5 percent,...
-
James Halperin, co-chair of Heritage Auctions, was interviewed about his experiences auctioning rare coins. Noting that when the auction house first opened in the 1970s, I used to proofread every...
-
An editorial on Bloomberg. com criticized President Bidens Buy American policy. The editorial argued that the . . . problem is that protectionism sets the US at odds with its international...
-
An article in the Wall Street Journal explained that despite rising national security tensions between the United States and China in 2023, trade between the two nations was rising. China is a...
Study smarter with the SolutionInn App