On March 6, Year 1, Salon Express purchased merchandise from Hair Fashions with a list price of
Question:
On March 6, Year 1, Salon Express purchased merchandise from Hair Fashions with a list price of $19,000, terms 2/10, n/45. On March 10, Salon returned merchandise to Hair Fashions. The list price of the returned merchandise was $8,500. Salon paid cash to settle the accounts payable on March 15, Year 1.
Required
a. What is the amount of the check that Salon must write to Hair Fashions on March 15?
b. Show the events in a horizontal financial statements model like the following one:
c. How much would Salon pay for the merchandise purchased if the payment is not made until March 20, Year 1?
d. Show the payment of the merchandise in Requirement c in a horizontal financial statements model like the one shown above.
e. Why would Hair Fashions sell merchandise with the terms 2/10, n/45?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Step by Step Answer:
a Purchase 19000 Less return 8500 Gross due subject to discount 10500 Discount percentage x 2 Amount ...View the full answer
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
