What do the terms 2/10, n/30 mean? If you were advising a company who bought goods under these terms, what would you advise it to do with respect to payment? Why?
Answer to relevant QuestionsWhat is a debit memorandum? What is a credit memorandum? Give an example of the types of transactions for which each would be used. The accounting records for ADR, Inc. reflected the following amounts at the end of August 2013: Cash ............. $3,500 Total Operating Expenses ....... 3,700 Accounts Payable ....... 4,500 Total ...Journalize the following transactions for the Pool Warehouse. Explanations are not required. a. The Pool Warehouse sold $55,000 of merchandise to Sonny’s Spas, Inc. on account, terms 2/15, n/30. The merchandise cost the ...On September 14, 2013, C & T Machinery, Inc. sold $2,300 of inventory (cost is $1,350) on account to one of its customers. The terms were 1/10, n/30, FOB destination. On September 16, C & T Machinery, Inc. paid freight ...On November 15, 2013, Chandler’s Department Store purchased $5,100 of inventory on account from one of its suppliers. The terms were 3/15, n/45, FOB shipping point. On November 18 Chandler’s Department Store paid freight ...
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