Rains Company is a furniture retailer. On January 14, 2022, Rains purchased merchandise inventory at a...
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Rains Company is a furniture retailer. On January 14, 2022, Rains purchased merchandise inventory at a cost of $57000. Credit terms were 2/10, n/30. The inventory was sold on account for $300000 on January 21, 2022. Credit terms were 1/10, n/30. The accounts payable was settled on January 23, 2022, and the accounts receivables were settled on January 30, 2022. Which statement is correct? O On January 30, 2022, customers should remit cash in the amount of $297000. O Gross profit percentage is 60%. O Cash flows were affected on January 14 and January 21. O There is not enough information available to answer this question. Rains Company is a furniture retailer. On January 14, 2022, Rains purchased merchandise inventory at a cost of $57000. Credit terms were 2/10, n/30. The inventory was sold on account for $300000 on January 21, 2022. Credit terms were 1/10, n/30. The accounts payable was settled on January 23, 2022, and the accounts receivables were settled on January 30, 2022. Which statement is correct? O On January 30, 2022, customers should remit cash in the amount of $297000. O Gross profit percentage is 60%. O Cash flows were affected on January 14 and January 21. O There is not enough information available to answer this question.
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Answer rating: 100% (QA)
Since payment and receipt were made within 10 days both would be eligible for discount SALES ... View the full answer
Related Book For
South Western Federal Taxation Individual Income Taxes 2017
ISBN: 9781305873988
40th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen
Posted Date:
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