Goods are sold on credit by the supplier to one of its customers, amounting to $20,000....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Goods are sold on credit by the supplier to one of its customers, amounting to $20,000. The credit was granted as per the term of sale with 3/15 net 40. Now, according to terms, a $20,000 trade credit is given to the customer for 40 days from the date of the invoice issued. However, as per the term of sale, if the payment is made by the customer to the supplier within 15 days from the date when the invoice was issued to the customer, then the cash discount of 3% will be given to the customer. Customer is required to make payment of: Goods are sold on credit by the supplier to one of its customers, amounting to $20,000. The credit was granted as per the term of sale with 3/15 net 40. Now, according to terms, a $20,000 trade credit is given to the customer for 40 days from the date of the invoice issued. However, as per the term of sale, if the payment is made by the customer to the supplier within 15 days from the date when the invoice was issued to the customer, then the cash discount of 3% will be given to the customer. Customer is required to make payment of:
Expert Answer:
Answer rating: 100% (QA)
Credit sale to customer 20000 Credit terms 315 net 40 days it means 3 cash discount given to t... View the full answer
Related Book For
Financial Management for Decision Makers
ISBN: 978-0138011604
2nd Canadian edition
Authors: Peter Atrill, Paul Hurley
Posted Date:
Students also viewed these accounting questions
-
On January 1, 2009, the Government of Canada introduced a new tax-free savings account (TFSA). This allows individuals to contribute up to $5,000 to a TFSA each year. While the contribution is not...
-
Question 2 Benedi Division is one of the responsibility centres in Franz Ltd. The company currently measures and rewards the division managers' performances based on the return on investment (ROI)....
-
Who may qualify for a Guaranteed Income Supplement (GIS)?
-
Nu Company reported the following pretax data for its first year of operations. Net sales 2,930 Cost of goods available for sale 2,420 Operating expenses 750 Effective tax rate 20 % Ending...
-
Refer to the data in exercise 21. Units in beginning inventory ....... 0 Units produced ............ 20,000 Units sold ............... 19,000 Selling price per unit .......... $ 100 Variable costs...
-
Define a pure substance.
-
The velocity ratio of first system of pulleys is _____.
-
Freeport-McMoRan Copper & Gold Inc., headquartered in Phoenix, Arizona, is one of the worlds largest copper, gold, and molybdenum mining and production companies, with its principal asset in natural...
-
(1 point) A cryptography student has accidentally used the same keystream to encrypt two different messages, M and M2. We know that the ciphertexts are C 0x06c6d00e4633400a and C2 =...
-
David is age 40 and was widowed in 2022. He has a daughter, Linda, age 8.David provided the entire cost of maintaining the household and over half of the support for Linda. In order to work, he pays...
-
1. The following are data for two IT projects for a new database system. Prepare a spreadsheet for two projects, using the following data. Amounts are in thousands of dollars. Calculate the NPV for...
-
Prior to visiting his company for the interview, you receive a letter from T. J. McKee that explains that you will be reimbursed for all travel and meal expenses. You will stay in a complimentary...
-
Explain how the multiple options close might be used in the sale of mens and womens suits.
-
When a customer says, I want time to think it over, what type of resistance is the salesperson encountering? Suggest ways to overcome this type of buyer concern.
-
During the interview, T. J. McKee requests salary information about your most recent full-time position. You believe this information may influence the starting salary offer, should you be offered...
-
Explain the summary-of-benefits close (step-by-step close).
-
Have you ever wondered why famous entrepreneurs and other celebrities can command high-speaking fees? How much are they really making per appearance and what factors may justify their high fees? The...
-
Diamond Walker sells homemade knit scarves for $25 each at local craft shows. Her contribution margin ratio is 60%. Currently, the craft show entrance fees cost Diamond $1,500 per year. The craft...
-
Use the data in Problem and Case 6.7 to calculate the internal rate of return for each project. For simplicity, assume the cash flows occur at the end of the year, except for the original cost of the...
-
Air Porters Inc. has common shares of $100 million and retained earnings of $23 million according to its latest balance sheet. There are 5 million shares outstanding. Inventory has a net realizable...
-
A new machine costing $250,000 will provide the following cash flows: Year Amount 0 .........................................(250,000) 1 ......................................... 30,000 2...
-
In July 2022, in a press conference after a meeting of the FOMC, a reporter asked Chair Powell the following question: Within the Fed, there are staff economists whove argued that NAIRU, the...
-
In early 2021, an article in the New York Times quoted Fed Chair Jerome Powell as saying that a robust job market can be sustained without causing an outbreak of inflation. a. What did Powell mean by...
-
What role did the natural rate of unemployment traditionally play in the Feds approach to monetary policy? How does the new monetary policy strategy the Fed announced in 2020 affect that role?
Study smarter with the SolutionInn App