Question

The debits and credits from four related transactions are presented in the following T accounts. Describe each transaction.
A retailer is considering the purchase of 250 units of a specific item from either of two suppliers. Their offers are as follows:
Supplier One: $400 a unit, total of $100,000, 1/10, n/30, no charge for freight.
Supplier Two: $399 a unit, total of $99,750, 2/10, n/30, plus freight of $975.
Which of the two offers, Supplier One or Supplier Two, yields the lower price?



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  • CreatedFebruary 28, 2014
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