Top Notch Company purchased merchandise on account from a supplier for $13,500, terms 2/10, n/30. Top Notch

Question:

Top Notch Company purchased merchandise on account from a supplier for $13,500, terms 2/10, n/30. Top Notch Company returned $4,000 of the merchandise before payment was made and received full credit.

a. If Top Notch Company pays the invoice within the discount period, what is the amount of cash required for the payment?

b. Under a perpetual inventory system, what account is decreased by Top Notch Company to record the return?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Survey of Accounting

ISBN: 978-1133189121

6th edition

Authors: Carl S Warren

See More Books

Question Posted: Feb 04, 2014 07:41 AM

See More Questions

The Stationery Company purchased merchandise on account from a supplier for $28,900, terms 1/10, n/30. The Stationery Company returned $6,100 of the merchandise and received full credit. a. What is...
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...
Newgen Company purchased merchandise on account from a supplier for $9,000, terms 2/10, n/30. Newgen Company returned $1,200 of the merchandise and received full credit. a. If Newgen Company pays the...
There are two major producers of corncob pipes in the world. Suppose that the inverse demand function for corncob pipes is described by p = 120 - 4g where g is total industry output and suppose that...
Provide a structural formula for the product from each of the following reactions. (a) (b) (1) NaOCH, CH,OH (2)Br o o (3) HCI, H,O, heat OH heat HO
What is a financial market? What are some of the factors that ensure the stability of financial markets?
Daniel lives in a rural town located in the Commonwealth of Massachusetts on 200 acres of land that includes a house, a greenhouse, and a large garden. The greenhouse is located about 15 feet from...
Cash budget (appendix.) Refer to the information in problem 6-33. Assume the following: Pet Transport (PT) does not make any sales on credit PT sells only to the public; aid accepts cash and credit...
which a disk A of radius r rotates about a fixed vertical axis with angular displacement q1. A bar B of length h is pinned to A such that the axis of rotation is a radial line of A. (Note this is a...
Roberto Perez is puzzled. His company had a profit margin of 10% in 2014. He feels that this is an indication that the company is doing well. Julie Beck, his accountant, says that more information is...
Merchandise is sold on account to a customer for $12,500, terms FOB shipping point, 1/10, n/30. The seller paid the freight of $250. Determine the following: (a) Amount of the sale, (b) Amount...
Milan Co., a womens clothing store, purchased $120,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. Milan Co. returned $16,000 of the merchandise, receiving a credit...
A manometer, containing water; is used to measure the pressure of a gas supply in a school laboratory. Its reading is h cm of water. Why is it better to use water in the manometer, rather than...
The formula to calculate labor cost percentage is X divided by Y. What is X and what is Y?
a) Define Cost of Goods Sold (COGS)? b) What are some possible explanations of COGS increases faster than sales c) What are the possible red flags/fraud symptoms? d) What is the formula to calculate...
Muhammad's father claimed him as a dependent on his tax return. Muhammad had unearned income of $3,200 in the most recent tax year. What is the minimum allowed reduction in unearned income that...
The following financial data have been taken from the records of CP Enterprises. Accounts receivable $200,000 Accounts payable $80,000 Bonds payable, due in 10 years $300,000 Cash $100,000 Interest...
Cual de las siguientes es la entrada de jornal apropiada para registrar la declaracion de dividendos en efectivio? Cash dividend Cr. Cash dividend payable, cash dividend Cr. Efectivo , efectivo cr....
Explain how frustration could be an independent, extraneous, or dependent variable, depending on the study.
On August 31, 2012, the balances of the accounts appearing in the ledger of Wood Interiors Company, a furniture wholesaler, are as follows:Prepare the August 31, 2012, closing entries for Wood...
Which is the most accurate statement with respect to our chemical industry? a) It is on the decline and now contributes to our balance of trade defi cit. b) It is large and growing. c) It generally...
A bank manager of First Union Bank Inc. uses the managerial accounting system to track the costs of operating the various departments within the bank. The departments include Cash Management, Trust,...
Dominos Pizza L.L.C. operates pizza delivery and carryout restaurants. The annual report describes its business as follows: We offer a focused menu of high-quality, value-priced pizza with three...
The city of Western Heights has an annual budget cycle that begins on July 1 and ends on June 30. At the beginning of each budget year, an annual budget is established for each department. The annual...
Mzee have Tshs 800,000,000 in the bank account, of which he wants to invest in Physical assets, Marketable investment and financial investments. As an expert in investment collect necessary...
find intervals of convergence of f(x), f'(x), f''(x) and the antiderivative of f(x). check for endpoints . f(x) = = n=1 (1)"+(x 2)" n
What force ( in N ) must be applied to a 1 5 0 . 0 kg crate on a frictionless plane inclined at 3 0 degree to cause an acceleration of 6 . 5 m / s 2 up the plane?

Top Notch Company purchased merchandise on account from a supplier for $13,500, terms 2/10, n/30. Top Notch

Question:

Step by Step Answer:

a Purchased merchandise 13500 Return 4000 ...View the full answer

Survey of Accounting

Students also viewed these Accounting questions