Details of a purchase invoice and related credit memo are summarized as follows:   

              

Invoice:	Cost of merchandise listed on purchase invoice	$6,500
	Prepaid freight charge added to invoice	150
	Terms, FOB shipping point, 1/10, n/eom
	Credit memo: Cost of merchandise returned	$1,500

 

 Assume that the credit memo was received prior to payment and that the invoice is paid within the discount period. Determine the following:  

        

(a)	Amount of the cash discount allowed.
(b)	Amount to be paid by the purchaser if the discount is taken.
(c)	Cost of the merchandise to the purchaser if the discount is NOT taken.

 

  

 

 210.Conquest Company uses a perpetual inventory system. Conquest purchased $1,500 of merchandise on account and payment was made within the discount period. The credit terms were 2/10,n/30. Journalize Conquests purchase and payment. 

 

  

 

  

 

 212.Details of invoices for purchases of merchandise are as follows:  

                                   

				Returns and
	Merchandise	Freight	Terms	Allowances
(a)	$800	$45	FOB shipping point, 1/10, n/30	$200
(b)	4,600	---	FOB destination, n/30	800
(c)	2,400	55	FOB shipping point, 2/10, n/30	600
(d)	7,500	---	FOB destination, 1/10, n/30

 

 Determine the amount to be paid in full settlement of each of the invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. 

 

 213.Journalize the entries to record the following selected transactions:  

      

(a)	Sold $900 of merchandise on account, subject to 7% sales tax. The cost of the merchandise sold was $510.
(b)	Paid $436 to the state sales tax department for taxes collected.

 

  

 

  

 

  

 

  

 

  

 

Answer rating: 100% (QA)

Answer 210Conquest Company uses a perpetual inventory system Conquest purchased 1500 of mercha... View the full answer